Ok, ima be totally real with all of you, I dont know SHIT about cryptocurrency or none of that, the only reason im even checking the stock market is cus since it's ASTRONOMICALLY fucked rn, I figured I'd invest a little into S&P cus "why not"
I was checking it today and I was curious about Etherium and I noticed this MASSIVE spike and it just dips right back down all in like 20-30 minutes. Wtf happened? What caused this? Is there some kinda "pump and dump" happening?
This was taken just a few minutes ago...
And I took this one just now...
For the most part, Crypto assets have no real value. They can be used as a currency, but that's infrequent at this point, and really it's now just a speculative asset.
In other words, Ethereum's (and other Cryptos) value is based almost entirely upon how much people think someone else will pay in the future.
If they think the price will go up, then they will buy. If they think the price will go down, then they will sell.
Because of this, any shred of evidence that could predict the perceived value going up or down can cause a huge shift in the market. Most likely a news article was released, or someone Tweeted something, that made people think the price could change.