Elena
Sun Jul 07 2024
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7 answers
1479
How does supply and demand affect cryptocurrencies?
Could you elaborate on how the dynamics of supply and demand influence the value and fluctuations in the cryptocurrency market? As we observe the volatility of various coins, does the limited supply of some cryptos like Bitcoin, or the potential for increased supply in others, play a significant role in determining their price movements? How do investors and traders factor in these supply-demand principles to make informed decisions in this highly speculative market? And furthermore, what are the implications for long-term investors who are looking to build a diversified portfolio of cryptocurrencies?
