Explain Like I'm Five

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

submitted 2 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] 2 points 2 weeks ago

In the stock market, high volatility can mean that investors are uncertain about the future, which can lead to big price changes. Low volatility usually indicates that investors feel more confident about the market.

You are experiencing high volatility in the stock market due to geopolitical events (tariffs being one of them). Given that the stock market is uncertain that impact crypto assets as investors pulled back from riskier investments.