The prices of cryptocurrencies have been going up and down since it was created and there are so many factors that can make the price fluctuate that way and i will be identifying such factors below:
1. Supply and demand: The higher the demand the higher the price. If theres an high demand for bitcoin and other cryptocurrencies you will definitely see and increase in them. We all know that the total supply of bitcoin is just 21,000,000. This makes bitcoin very scarce and it will definitely see an increase in price following the rule of the lower the supply the higher the price
2. Market speculation: Speculation provides the market with liquidity and the aim of this speculators is to make profit. So many people see cryptocurrency as a speculative tool because its easy to create fear in people about a coin and so many people will FOMO in.
3. Regulatory and Government issues: The government of every country are always finding a way to regulate all cryptocurrencies which is not possible. The fact that they dont like the decentralized nature of it. Cryptocurrency is definitely not accepted in every country in countries where it is accepted and probably the decide to regulate and ban later. This can affect the price of cryptocurrencies badly.
4. Community size: The scale of the group is what significantly impacts the Bitcoin price or every other crypto. A wide group is signalling that there is strong interest for this coin. Many businesses and individuals use it, and that broad adoption encourages more growth.
5. Ecosystem development: Many cryptos have their issues even the head of it all Bitcoin. Presently scalability is the main challenge of bitcoin, This means the network is unable to deal with the rising amount of transfers that users submit. Many cryptos have their issues too and these issues can cause a decrease in the price of them