The broader crypto market pricing is based mostly on speculation. Some of it based on the utility of which tokens are used to buy NFTs. Ethereum and Solana rule there. My knowledge of that genre is fairly limited so I’ll stop there. There is a whole separate thread on nfts if you’re interested.
My interest is more Bitcoin centric so I can help there. It’s a complex topic but I’ll try. Bitcoin’s value is derived from two basic attributes imo. First of all it is a verifiably scarce asset in a time of fiat abundance. There will only ever be 21 million Bitcoin. It doesn’t take a sophisticated observer of financial markets to see the enormous amount of money printing that has happened in increasing amounts since 2007-2008. We’re seeing some of the chickens coming home to roost now in the cpi numbers, but the effects have been obvious in the prices of real estate, health care and higher education for years. If you’ve been holding Bitcoin for a while now the cost of those things has actually gone down in Bitcoin terms in the face of massive fiat increases.
The second big reason Bitcoin has value is it is an uncensorable form of money. Anyone on the planet that can access the network can transmit value over it. That used to be something that really only resonated with citizens in developing countries. But we now live in a country where the government is pushing for access to surveil any bank account with over $600 in it. If/when they get that it doesn’t take a lot to see a world where more and more transactions are flagged if you’re a “domestic terrorist” or engaging in activities that are detrimental to the climate or anything else the government doesn’t like. And if you think those are valid concerns that should be censored then you need to realize that power can be directed against anything eventually when the wrong person is in charge. I sleep well knowing that a significant portion of my wealth is outside the control of our legacy financial system and the government.
In short, Bitcoin is freedom money that cannot be debased. Its price goes up as more people and entities decide they want to hold some for reason #1 or reason #2 or both.
If you’re interested in a more in depth look at the history of money and why Bitcoin is important this site has an introductory course on it. I haven’t watched the videos but it’s a well regarded, free course.
https://learn.saylor.org/course/PRDV151