Crypto Volatility

Crypto volatility refers to the degree of variation in the price of cryptocurrencies over a specific period. It is commonly expressed in terms of percentage change and indicates how much a cryptocurrency’s price can fluctuate within a short timeframe. High volatility in the crypto market can lead to significant price increases or decreases, making it a risky investment as well as an opportunity for traders seeking profit through price movements. Factors contributing to crypto volatility include market sentiment, regulatory news, technological developments, and macroeconomic trends. The unpredictable nature of cryptocurrencies, influenced by their relatively low market capitalization compared to traditional assets, contributes to their erratic price movements.