What are the factors that influence volatility in crypto?
New and Emerging Market
The crypto market is still a new asset class compared to established counterparts like the stock market or gold.
Supply and Demand
The law of supply and demand influences any financial asset’s price movement and volatility.
Sentiment and the Investor Profile
Crypto prices and investor sentiment are intrinsically linked.
Speculation
As the potential for enormous profits is high, the volatility of the market itself lures individuals to place speculative bets.
Regulation
Unlike traditional financial markets, cryptocurrencies are yet to be fully recognized as an established asset class.
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