Explain Like I'm Five

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ELI5 Why does crypto keep spiking for no reason? (lemmy.world)

submitted 3 weeks ago by [email protected] to c/[email protected]

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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...

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[–] [email protected] 1 points 3 weeks ago

Same as eggs… if enough people believe other people will want to buy it for a dollar more than they paid, they will pay the asking price. When supply is scarce that drives the price up.