Digital currencies such as Bitcoin and Ethereum are digital assets created based on blockchain technology. Various factors influence their rates:
1. *Supply and Demand: * Like any market, if demand exceeds supply, the rate will increase and vice versa.
2. *News and Events: * Information, news, or decisions related to cryptocurrencies can significantly impact rates, such as regulatory announcements or positive/negative events.
3. *Technology: * Advances and changes in blockchain technology or related technologies can affect rates.
4. *Impact of global financial markets: * The state of global financial markets can also affect the rate of digital currencies.