Why do altcoins often experience price fluctuations?

3 answers

• Jan 14, 2022 · 3 years ago
  Altcoins often experience price fluctuations due to their relatively low market capitalization and liquidity. Since altcoins are not as widely adopted as Bitcoin, they are more susceptible to market manipulation and speculative trading. Additionally, altcoins are often influenced by news and events specific to their respective projects, which can cause sudden price movements.
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• Jan 14, 2022 · 3 years ago
  Price fluctuations in altcoins can be attributed to the volatile nature of the cryptocurrency market as a whole. The market is highly influenced by factors such as investor sentiment, regulatory developments, and technological advancements. Altcoins, being alternative cryptocurrencies to Bitcoin, tend to be more volatile as they are still in the early stages of development and adoption.
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• Jan 14, 2022 · 3 years ago
  According to a study conducted by BYDFi, altcoins experience price fluctuations primarily due to their lower trading volumes and market capitalization compared to Bitcoin. This makes them more susceptible to price manipulation by whales and pump-and-dump schemes. It is important for investors to carefully analyze the fundamentals and market conditions of altcoins before making any investment decisions.
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