This is my view of the driving force behind the price of crypto currencies:
- First and foremost, NEWS. If a crypto currency is in news, the price either goes upwards or downwards depending on the news being positive or negative. So people who are into trading cryptos always keep an eye for news.
- ICOs or Initial coin offerings. Any upcoming ICO drives the price of cryptos which will be accepted in the ICO. Recent example is that of Ethereum. Ethereum price clocked $400+ just before the Bancor ICO.
- Addition of cryptos to an exchange. Any time a crypto is added to one of the major exchanges, the price changes. This happens mainly due to an increase in volume of the transactions of this particular crypto. Latest example being Litecoin.
- Addition of New features to existing cryptos or their supporting platform drives the price.
- Global acceptance of cryptos. An increase in popularity of a crypto or an increase in the usage of a crypto drives the price.
Feel free to add more in the comments section.