What Makes Crypto Prices Go Up And Down? | Fidelity Investments

Let’s talk Bitcoin and crypto volatility and why crypto prices go up and down quickly and frequently. This video explains what factors contribute to crypto price swings and why.

Questions? Drop them below 👇 and we’ll reply right in the comments.

Learn more at https://www.fidelity.com/learning-cen... Start investing at https://www.fidelity.com/crypto/trading
Visit Fidelity Learn for crypto articles, videos, infographics, and more: https://go.fidelity.com/r2s8kz
Register for upcoming Covering Crypto Livestreams: https://go.fidelity.com/h9pdm5

•To see more videos, subscribe on YouTube:    / fidelity  
• Follow Fidelity on Discord:   / discord  
• Follow Fidelity on Facebook:   / fidelityinvestments  
• Follow Fidelity on Instagram:   / fidelity  
• Follow Fidelity on LinkedIn:   / fidelity-investments  
• Follow Fidelity on Pinterest:   / fidelityinvestments  
• Follow Fidelity on Reddit:   / fidelityinvestments  
• Follow Fidelity on TikTok:   / fidelity  
• Follow Fidelity on X (Twitter):   / fidelity  

Fidelity Crypto® accounts and custody and trading of crypto in such accounts are provided by Fidelity Digital Asset Services, LLC, which is chartered as a limited purpose trust company by the New York State Department of Financial Services to engage in virtual currency business (NMLS ID 1773897). Fidelity Crypto and Fidelity Digital Assets are service marks of FMR LLC.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.

1043039.4.2


******************************************************************************

Why is crypto so up and down? Cryptocurrencies can be like a theme park ride. There are
highs and lows that can be somewhat unpredictable. But what causes that? Let's look at some volatility factors. We've always bartered and exchanged for goods and services-- everything from 2 sheep for a cow to $10 for a pizza. These transactions work because both the buyer and seller trust the value of what's being exchanged.
But cryptocurrency is still new and some people are skeptical of its long-term value. And since people are skeptical, current events and influential figures are known to have a dramatic impact. A simple tweet from the right person could immediately affect the price of crypto. Unlike traditional investing, crypto can be bought, sold, and traded 24/7 365. That means anything that happens late nights, weekends, and/or on holidays can have an immediate impact. Government plays a huge role in any currency stability. Both restrictive and beneficial legislation can affect prices. And since crypto is new, it may take time for policymakers to establish consistent guidelines.
The truth is no one can predict the future. Crypto can be an exciting ride, but it's also OK to be cautious--just like on a roller coaster. So here's a quick recap. Are you feeling more crypto confident? Explore crypto right here at Fidelity and visit Learn on fidelity.com for more.