Cryptocurrency prices, why do they fluctuate so much? Here are some brief reasons ...
Have you ever wondered why i cryptocurrency prices do they fluctuate so much? And what are the reasons for such fluctuations that can constitute cross and delight for investors?
One of the main reasons why i cryptocurrency prices move so much is due to the "novelty" of this market, but not only. For example, compared to a traditional and consolidated market, the cryptocurrency market does not offer as much liquidity: the difference in the total market cap between fiat currency and cryptocurrency is over 89 trillion dollars, with a differential of 36.000 percent. Still, the daily trading volumes of cryptocurrencies are around $ 14 billion, while traditional markets, on the other hand, move around $ 5 trillion.
However, there are many new users who want to join the cryptocurrency sector every day, and recent dossiers show that tens of thousands of customers come to this sector every week. Many new users have a personal interest in the fact that certain cryptocurrencies can move up or down, obviously pushing the market in conditions of greater volatility, and generating disturbances.
Unfortunately, another underlying motivation may be the manipulation of prices: widespread in new markets, it is a very complex issue which we will talk about in an in-depth focus.
