Crypto prices

Cryptocurrency prices are driven by supply, demand, market sentiment, adoption, and regulatory news. Utility, scarcity, and broader economic conditions also play key roles. Essentially, it's what buyers are willing to pay based on current and perceived future value.

Trading volume is the total amount of a cryptocurrency bought and sold over a period. High volume indicates strong interest and liquidity, making price trends more reliable. Low volume can lead to high volatility and easier price manipulation.

Historically low, the correlation has increased. Crypto, especially Bitcoin, now often moves with tech stocks and major indices as a "risk asset," influenced by interest rates and inflation. However, it can still decouple during crypto-specific events.

No. A low price per coin/token does not mean it's cheap or undervalued. The key metric is market capitalization (price × circulating supply). A low-priced asset can still have a very high total valuation if supply is enormous. Value depends on utility, demand, and fundamentals, not the unit price.

Key factors influencing crypto prices include:
- Utility & Adoption: Practical use cases, active users, and network activity.
- Scarcity & Tokenomics: The total and circulating supply, and how tokens are issued or "burned."
- Market Sentiment: News, media coverage, social media trends, and overall investor confidence.
- Regulation: Government policies and legal developments can significantly impact crypto price.
- Competition & Innovation: Developments within a project or from rival cryptocurrencies.
- Macroeconomic Factors: Interest rates and economic conditions, as investors often treat crypto as a risk asset.
In short, price is a reflection of market perception of a coin's current and future value, driven by a combination of technology, speculation, and external events.

Crypto prices are highly volatile due to lower market liquidity, high levels of speculation, and sensitivity to news, regulatory announcements, and sentiment. The market's relative newness and smaller size compared to traditional assets amplify price swings.

Crypto prices differ between exchanges due to independent markets with varying liquidity, local supply and demand, and differing trading fees. Geographic restrictions, payment method availability, and the speed of arbitrage trading to correct these small gaps also contribute.

Yes. If a project loses all utility, adoption, and trust—due to failure, security breaches, or obsolescence—demand can vanish, pushing the price effectively to zero. This is a common risk for less-established tokens.