What Really Causes The Rise And Fall Of Cryptocurrencies Prices. (In Simple Terms)

🚀 Every Successful Trader Knows This 🚀

Imagine a tug-of-war, but instead of teams, it's between people who want to buy crypto (because they think it'll be worth more later) and people who want to sell (because they think it'll drop).

When more people pull to buy, the price goes up. When more want to sell, it goes down. That's the main idea behind crypto prices!

Here are some things that can tip the tug-of-war in one direction or the other:

Pull to Buy:

▪︎Hype and excitement: If people suddenly get super interested in a new coin or think the whole crypto thing is gonna take off, everyone rushes to buy, pushing the price up.

▪︎Good news: Updates to a coin's technology, adoption by big companies, or positive headlines can make people more confident and willing to buy.

▪︎Limited supply: Some coins have a built-in limit on how many can exist. As more get mined or used, the remaining ones become more valuable, pulling the price up.

Pull to Sell:

▪︎Panic and fear: If a big hack, bad news, or a general negative outlook on crypto spreads, people panic and rush to sell, sending the price plummeting.

▪︎Competition: New, shiny coins can steal attention and buyers away from older ones, making their prices drop.

▪︎Macro forces: Things like changes in interest rates or the overall health of the economy can also affect how attractive crypto seems as an investment, influencing the tug-of-war.

Remember, crypto is still a wild west compared to traditional markets. Prices can move fast and unexpectedly, so always do your own research and only invest what you can afford to lose!

Hope this helps!

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