Where does the huge volatily come from? (Noob question)
When you watch the charts, there are some really big gaps in cryptocurrency prices. Take BTC rising to $1000 for a few days in 2014, then pumping and dumping a bit before staying as low as $400, then rising again almost to $3000 the past weeks, then below $2000... What are the reasons for such huge volatility? I get that a few people own a large part of BTC and are able to develop pump strategies, but it seems more and more difficult. There must be other reasons, but I have trouble understanding them. It's "easy" to explain volatility about traditional markets, when you consider bank rates, government decisions, economic success and failure, etc.
So, in your expert opinion, what are the biggest reasons to the cryptocurrencies current almost unpredictable volatility? Thanks for your insight!!
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