What makes waves so big?

As a cryptocurrency and finance practitioner, I'm often asked about the volatile nature of the market. One common query I encounter is: "What makes waves in the cryptocurrency market so big?" The answer often lies in a combination of factors. Firstly, the novelty and relative immaturity of the crypto market means it's more susceptible to speculation and hype cycles. This leads to sharp price movements when new investors enter or exit the market. Secondly, the decentralized nature of many cryptocurrencies allows for faster price discovery, but also contributes to volatility as there are no central authorities to stabilize prices. Finally, the market is heavily influenced by news and sentiment, both positive and negative, which can trigger sudden surges or dips in value. Understanding these factors is crucial for investors navigating the crypto landscape.