Why does the price of Bitcoin go up and down?
Imagine Bitcoin as digital gold. Like gold, its value can go up and down depending on demand and external factors. In this case, Bitcoin has been going up because there are a lot of people buying it, mostly thanks to investment in funds called ETFs. These ETFs are a popular way to invest in cryptocurrencies without having to buy them directly. In the past few days, these funds have received more than $1 billion, which is driving up the value of Bitcoin.
What's happening with Dogecoin?
Dogecoin, known as the meme coin, has seen a huge surge in value, going up 10% in just 24 hours. The reason? Elon Musk. Every time Musk talks about Dogecoin, the cryptocurrency skyrockets. Today, Dogecoin hit $0.1337, its highest value in months, after Musk renewed his public support.
What does this mean for investors?
If you don't know much about cryptocurrencies, you might think of it as when a company's stock goes up because an influential person speaks well of it. Elon Musk has proven several times that his words can change the market, and Dogecoin is no exception.
What about other cryptocurrencies?
While Bitcoin and Dogecoin continue to grab the spotlight, other major cryptocurrencies like Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) have also seen small gains, around 1% over the past 24 hours. However, not all coins are on the rise: XRP and Tron (TRX), for example, have seen small declines.
