Why are the foreign currency rates of cryptocurrencies in the US fluctuating so much?

3 answers

• Dec 30, 2021 · 3 years ago
  The fluctuation in foreign currency rates of cryptocurrencies in the US can be attributed to several factors. Firstly, the decentralized nature of cryptocurrencies makes them highly susceptible to market sentiment and speculation. Any news or events that impact the perception of cryptocurrencies can cause significant price movements. Additionally, the lack of regulation and oversight in the cryptocurrency market allows for manipulation and price manipulation by large players. Lastly, the relatively small market size of cryptocurrencies compared to traditional fiat currencies makes them more prone to price manipulation and volatility.
  641321
• Dec 30, 2021 · 3 years ago
  The foreign currency rates of cryptocurrencies in the US are highly volatile due to the speculative nature of the market. Cryptocurrencies are still relatively new and their value is primarily driven by investor sentiment. Any news or events that affect the perception of cryptocurrencies can lead to significant price fluctuations. Furthermore, the lack of regulation and oversight in the cryptocurrency market allows for market manipulation, which further contributes to the volatility. It's important for investors to understand the risks associated with investing in cryptocurrencies and to be prepared for the possibility of large price swings.
  649217
• Dec 30, 2021 · 3 years ago
  As a representative of BYDFi, I can say that the fluctuation in foreign currency rates of cryptocurrencies in the US is a result of various factors. The decentralized nature of cryptocurrencies, combined with the speculative nature of the market, leads to high levels of volatility. Additionally, the lack of regulation and oversight in the cryptocurrency market allows for market manipulation, which further exacerbates the volatility. It's important for investors to carefully consider the risks before investing in cryptocurrencies and to stay updated on the latest market trends.
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