Supply and demand is the most crucial determinant of cryptocurrency prices, and This is the primary economic principle. If a cryptocurrency has a high token supply with little demand from traders and users, then the cryptocurrency's value will drop. Conversely, if the supply of a particular cryptocurrency is limited and the demand is high, then the coin's value will increase.
The value is linked to the scarcity element that drives up prices and is one of the factors that saw the price of Bitcoin climb to its highest levels. The supply of Bitcoin is capped at 21 million BTC - which is relatively low compared to other tokens - white the demand has soared in recent years.
The media or public sentiment also has a significant influence over the price of cryptocurrencies. If a token or platform gets negative publicity, you would generally see the cost of that token take a dip. While, if the same coin were to get high profile support and good media coverage, the price would almost certainly increase; this means human emotions and excitement heavily influence prices.