A price spike is a rapid and significant increase in the price of an asset over a short period. This phenomenon typically occurs due to sudden shifts in supply and demand, major news events, or speculative trading activity. Such spikes are often followed by a retracement or stabilization of the price.
Context
Price spikes in digital assets are frequent occurrences that garner substantial attention in crypto news. They can be triggered by regulatory announcements, technological breakthroughs, or macroeconomic events impacting investor sentiment. Analyzing the causes and consequences of these spikes is essential for understanding market volatility and identifying potential trading opportunities or risks.
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