What Drives Crypto Volatility? Key Determinants in the Cryptocurrency Market
Why Do Crypto Prices Swing So Wildly?
Cryptocurrencies like Bitcoin and Ethereum can see huge price changes in just hours. One day, Bitcoin jumps 10%, the next it drops 15%. This wild action draws traders but scares many investors. Understanding the
In this post, we break down what causes these swings. We look at simple stats to measure risk and key factors behind the chaos. Whether you’re new to crypto or a seasoned trader, this guide makes it easy to grasp.
What Is Volatility in Crypto?
Volatility means how much prices move up and down. High volatility equals big swings; low means steady prices. In crypto, volatility is sky-high compared to stocks or gold.
For example, the S&P 500 stock index has…
