Explain Like I'm Five

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

submitted 1 month 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 days ago (1 children)

Sooo, when people start selling enmass, is that when the stock spikes?? or is that when people start buying enmass cus its low??

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

The asset price spikes when lots of buying happens, not selling. If more buys are occurring, then sellers are able to sell their assets for more (simple supply and demand). A spike up in price means more buying (lower supply).