Dario
Sun Jul 14 2024
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5 answers
1432
Why do cryptocurrency prices go up as demand increases?
Could you elaborate on why cryptocurrency prices tend to rise in tandem with increasing demand? I'm curious to understand the economic principles behind this phenomenon. Does the rise in demand signal greater confidence in the cryptocurrency's underlying technology or is it simply a result of more investors seeking to capitalize on the market's upward momentum? Also, does this pattern apply universally to all cryptocurrencies or are there specific factors that influence the price movements of certain digital assets? I'd appreciate a concise yet thorough explanation of the connection between demand and cryptocurrency prices.
