Since May 5, BTC has been rapidly getting cheaper. In 6 days, the price sank by $ 8 thousand, from 39 to 31. It is more important than ever to figure out what the cryptocurrency exchange rate depends on.

Crypto is considered a high-risk asset because of its ability to radically change the price in a brief period. This is also called volatility.

If we are talking about traditional money, such volatility equals 0. Their price depends on the policy of the bank or the government. There are also currencies whose exchange rate is tied to the price of a physical asset. For example, several “oil” currencies are the Russian ruble, the Iranian rial, the Venezuelan bolivar, etc.

If we are talking about a traditional crypt – not to be confused with stablecoins – its price depends on supply and demand. The more buyers – the higher the rate and vice versa.

The price depends on the actions of large investors (whales) and external factors.

These are the influence of the media, opinion leaders (Musk and DOGE), the political situation (the collapse of the cue ball after the ban of the crypt in China), successful PR, etc.