Those numbers on Forex, Stocks, or Crypto markets showing prices went up and down. What exactly happened behind the scene?
In: 1
Far as crypto goes…tbink pple realizing it for what it is. Nothing out of air so to speak. Same with NFT’s
Currencies are only worth as much as people think it is worth and are willing to invest into it. There are many reasons why people think crypto is worth less and are not willing to invest into it any longer. So it is very hard to give a good answer. A lot of the projects that depended on NFT like various metaverse implementations, different cryptocompanies and such have mostly shown to be scams or otherwise unviable concepts. Energy prices have also increased a lot driving the price of cryptomining up. The real economy have also stabelized a lot as the covid conditions are getting better so there are a lot of stable investment opertunities making people pull out of crypto to invest in the real economy. There have for a long time been a prediction of a crypto bubble, many investors have invested hoping to ride the bubble up and get out on the top. A small dip have made a lot of these think that the top have come and have sold out of the market expecting a crash, which have fueled the crash.
It is very hard to understand everything that is going on as it is a result of the psychology of hundreds of thousands of people all culmanating in the price. You would have to spend a lifetime studying the events to fully understand what is actually going on.
There is no inherent value to any crypto currency, so it just goes for whatever people are willing to pay for it.
And all of a sudden, people were not willing to pay nearly as much for it. Like other people have said, that is very possibly because they realized finally that it has no real value.
Anything can happen behind the scenes. Absolutely anything. What those numbers mean is that somebody exchanged at this rate, and previously somebody exchanged at a higher or lower rate, so the exchange rate has changed in some direction.
Why was one set of parties willing to exchange at one rate and then later a different set at a different rate? You’d have to ask those people. What the price means is the number people are willing to exchange at right now. Why would you be willing to do that? It could be because of some algorithm you have, or it could be because Jupiter is in Pisces and you accidentally dropped your lucky rock. Or it could be because some news came out about the weather in Peru and according to your theory that’s going to affect coffee prices in Amsterdam which will ruin the CEO’s day.
Basically all market prices are like that. Stocks, bonds, crypto, whatever.
Latest Answers