Cryptocurrency price fluctuations are affected by a variety of factors, including:

### 1. **Market Demand and Supply**

- **Scarcity**: Limited supply (such as Bitcoin) may push up prices.

- **Liquidity**: High-volume currencies are generally more stable, but large-scale buying and selling can cause volatility.

### 2. **Market Sentiment and Speculative Behavior**

- **Investor Sentiment**: News and social media influence investor sentiment.

- **Speculative Behavior**: Short-term buying and selling lead to sharp price fluctuations.

### 3. **Macroeconomic Factors**

- **Economic Policies**: Government monetary and regulatory policies affect the market.

- **Global Economic Conditions**: Economic uncertainty may increase the appeal of cryptocurrencies as safe-haven assets.

### 4. **Technological Development**

- **Technological Advances**: New technologies (such as Ethereum upgrades) increase the value of currencies.

- **Security Improvements**: Bug fixes increase investor confidence.

### 5. **Regulatory Environment**

- **Laws and Regulations**: Regulatory policies (such as bans, taxes) directly affect prices.

- **Legalization and adoption**: Acceptance by countries and companies drives demand and price increases.

### 6. **Market events and news**

- **Major events**: Hacker attacks and platform bankruptcies lead to price drops.

- **Cooperation and development**: New cooperation and expansion of application scenarios drive price increases.

### 7. **Competitive currency impact**

- **New currencies**: Innovative currencies disperse funds and affect the prices of existing currencies.

- **Competitive currency performance**: The price changes of major competitive currencies affect each other.

### 8. **Global political environment**

- **Geopolitical risks**: International political tensions affect the investment environment, which in turn affects the digital currency market.

These factors work together to determine the price fluctuations of digital currencies.