Cryptocurrencies are known for their high volatility. Similar to other assets such as stocks, the value of cryptocurrencies is primarily determined by supply and demand. Speculation, world events, talk of regulation, media outlets, and numerous other variables can all lead to increased volatility. Due to the fact that crypto is a relatively new market, these variables have the ability to greatly impact prices. However, as crypto becomes more widely adopted and trading volumes continue to increase, volatility may decrease.