The rise and fall of crypto prices occur due to the meeting between buyers and sellers. When more people want to buy than sell, prices will rise. Conversely, when selling pressure is greater than buying interest, prices automatically fall. This is the basic law of supply and demand that always operates in the crypto market.
Price movements are also greatly influenced by the sentiments and emotions of market participants. Positive news such as major adoption, supportive regulations, or hype from famous figures can trigger optimism and FOMO, causing prices to soar. Conversely, negative news such as strict regulations, hacks, or global issues make market participants fearful and lead to panic selling, which drives prices down rapidly.
In addition, crypto is a market with high liquidity and volatility, so large capital movements (whales) can significantly affect prices. Coupled with macro factors like interest rates, inflation, and global economic conditions, crypto prices never move in one direction. Therefore, increases and decreases in crypto are normal occurrences, not anomalies—rather, they are reflections of market psychology and money flows.
