John Reed Stark, former official of the US Securities and Exchange Commission (SEC), explained why cryptocurrency prices are volatile.
According to Stark, one of the biggest reasons for the variability in cryptocurrency prices is the legal nature of the industry. not adequately supervised.
According to the former official of the SEC, in the market manipulation is possible This causes cryptocurrency prices to change easily.
According to Stark, the absence of the conditions in the traditional sectors in the cryptocurrency sector paves the way for financial irregularities.
Another reason why cryptocurrency prices are volatile is the market volatility. speculations It is thought to be. According to Stark, many investors are buying cryptocurrencies, which are already worth more than they should be. sell at higher prices Buying with hope.
Stark thinks that a possible spot Bitcoin ETF to be approved in the USA would also be risky for investors.