What does it mean to instantly raise virtual currency? What are the reasons for the instant rise of virtual currency?

Cryptocurrency price fluctuations are mainly driven by the following factors: 1. Market manipulation and capital game, such as pulling up shipments, giant whale trading and exchange pins. 2. Good news and narrative drive, including technological breakthroughs, policy progress and practical application implementation. 3. Institutional entry and capital flows, traditional financial institutions’ layout, macroeconomic hedging and cross-chain integration drive price increases. 4. Technical analysis and algorithmic trading, key resistance levels breakouts, on-chain data signals and AI-driven strategies affect price trends. 5. Market sentiment and FOMO effects, social media hype, community consensus and panic buying lead to price fluctuations.

1. Market manipulation and capital game

• Pump and Dump: The meme coin launched by the United States in 2025 surged from $0.18 to $75 in 24 hours, and then plummeted to $17, with 810,000 investors losing more than $2 billion. Such operations attract retail investors to follow through social media hype and false positive effects, and the dealer sells at a high level to make a profit.
• Giant whale trading: A single large purchase of "whales" (such as institutions or individuals) holding a large amount of cryptocurrency can directly change market supply and demand. For example, after CME Group launched the Solana futures contract, institutional investors pushed SOL prices to rise by 15% in a single day through over-the-counter bulk trading.
• Exchange pin insertion and market maker strategies: Some exchanges induce retail investors to stop losses or chase the rise by creating false trading data (such as "pin insertion"). In 2025, the OURBIT platform sets "slip points" and demo accounts through data manipulation, resulting in a 40% increase in the probability of user losses.

2. Good news and narrative drive

• Technological breakthrough: Cardano Network completed the Chang hard fork upgrade in 2025, introduced an on-chain governance mechanism, and promoted the ADA price to rise by 22% in a single day. Similarly, Polygon renamed the MATIC token to POL and deployed the AggLayer expansion solution, driving the price to break through the key resistance level of USD 0.5.
• Policy and compliance progress: The expectation of the US SEC to approve the first Dogecoin ETF to drive DOGE prices to rise 35% in a single week. After the EU MiCA bill was passed, the number of users of compliant exchanges such as XBIT surged by 50%, and the trading volume exceeded US$2 billion per day.
• Practical application implementation: SpaceX announced that it will accept Dogecoin payment satellite launch service in 2025, driving DOGE prices to rise by 75% in a single month. After XRP introduced gold and silver tokens, it attracted traditional investors to enter the market, with a market value of over US$30 billion.

3. Institutional entry and capital flow

• Traditional financial institutions layout: BlackRock, Fidelity and other institutions accelerated their holdings of Bitcoin in 2025, injecting more than US$5 billion through futures and ETF channels, pushing the BTC price to exceed US$100,000.
• Macroeconomic hedging demand: cryptocurrencies are seen as anti-inflation tools under the Fed's interest rate hike cycle. In March 2025, the correlation coefficient between Bitcoin and gold rose to 0.68, and funds flowed from the stock market into the crypto market.
• Cross-chain and liquidity integration: Cosmos' ecological cross-chain transaction volume increased by 200%, and ATOM tokens rose by 40% due to interoperability advantages. Uniswap v4 supports multi-chain asset trading, driving ETH liquidity by 30%.

4. Technical analysis and algorithmic trading

• Key resistance level breaks through: After Bitcoin broke through the all-time high of $91,220 in March 2025, it triggered a "chasing up" strategy for the quantitative trading system, with the price rising 12% in 24 hours.
• On-chain data signals: indicators such as exchange net inflows, giant whale address transfers, etc. are used to predict price trends. For example, when the net inflow of Ethereum on-chain exchanges exceeded 100,000 ETH for three consecutive days, the ETH price rose by an average of 8% the next day.
• AI-driven strategy: The AI ​​systems of platforms such as OKX and Binance analyze on-chain data in real time, with the accuracy of predicting price trends reaching 78%, and the proportion of high-frequency trading robots increases to 45%.

5. Market sentiment and FOMO effect

• Social media hype: Musk mentioned on Twitter that Dogecoin caused its price to fluctuate by more than 50% in a single day. The "shouting order" behavior in the Telegram group can push the price of niche tokens by 200% in 10 minutes.
• Community consensus was formed: Cardano community launched a "staking mining" campaign through Discord and Reddit, promoting the ADA staking rate to increase from 28% to 45% and the price to rise by 30%.
• Panic buying: In 2025, the United States announced the establishment of a GED department to regulate cryptocurrencies, which triggered market concerns about tightening policies. Retail investors rushed to buy stablecoins such as USDT within 24 hours, causing the USDT premium rate to soar to 5%.

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