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How the Price Swings of Cryptocurrency Work
The world of crypto can feel like a dizzying ride, with prices seemingly fluctuating wildly. Unlike traditional currencies backed by governments, crypto operate in a free market, making their value susceptible to a complex interplay of factors. Let’s delve into the mechanisms that drive the price of crypto up and down, and how outflows and inflows play a crucial role. Supply and Demand: The Core Principle At its heart, the price of any asset, including cryptocurrency, is dictated by supply and demand. When demand for a particular cryptocurrency outpaces the available supply, its price rises. Conversely, if more crypto floods