Crypto Volatility, What is the Meaning and Causes?

THECRYPTO.WATCH – The condition of crypto assets is dynamic, so changes can occur at any time. For that, you should monitor crypto volatility closely. Because this will affect your decision.

Understanding Crypto Volatility

This term is often used to describe any change, whether it is an increase or decrease in the price of crypto assets. This depiction is based on a certain time period. 

It can also be interpreted as a statistical measure to show the spread of a security’s yield. The greater the spread also affects the risk of a crypto asset. This term is an indicator to show financial market stability.

If the volatility is high, there will be a sharp decline or increase in prices. However, in contrast to the low situation, the market conditions tend to be calm. Sellers and buyers are not dominating a trade.

The calculation will consider prices in the historical past. The calculation itself uses the variance and standard deviation. Where the standard deviation is the square root of the variance.

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