Cryptocurrency prices fluctuate often because of how much people want to buy or sell them at any given time. This is called supply and demand. When more people are interested in buying Bitcoin, for example, its price tends to go up. But if a lot of people suddenly start selling, the price can fall just as fast. Unlike traditional currencies that are regulated by central banks, cryptocurrencies are decentralized, so there’s no single authority controlling their value. That makes them more sensitive to news events, social media trends, or changes in regulations from countries around the world.

Another reason cryptocurrency prices move so much is because the market is still relatively new and developing. There are fewer rules compared to stock markets, and that makes prices more volatile. Even a tweet from a well-known figure can send prices soaring or crashing within minutes. Also, many people trade crypto hoping to make quick profits, so they react fast to any price changes. This high level of speculation adds to the instability. Unlike gold or real estate, digital assets don’t have a fixed value or physical backing so prices are driven by perception, emotions, and momentum more than anything else.