Despite bitcoin price rising by 57% in May, a new report from SFOX has downgraded the crypto market outlook to uncertain.
Volatility is the degree of variation of a trading price over time. In other words, volatility indicates the amount of uncertainty about the size of changes in an asset's value. The higher an asset’s spread of values means the higher volatility of it.
Volatility is a critical characteristic for investors as it shows both their risks and possible gains that comes with purchasing an asset. Cryptocurrency volatility is one of its most peculiar elements. As cryptocurrencies have no central authority and, correspondingly, no controlled emission mechanism, they are highly volatile. There are some other cryptocurrency features that make it volatile, such as having no intrinsic value, prevailing short-term investments and lack of institutional capital. Still, cryptocurrencies volatility is also what attracts a lot of investors and make it possible for the industry to develop so quickly after a lot of money was gathered due to the volatility of Bitcoin.
- Facebook to Unveil ‘Libra Association’ and Launch Testnet Next Week: Report
- Coinbase Custody Holds $1.3B in Assets Under Custody, Expects to Hit $2B ‘Soon’
- Bitcoin Worth Over $9,200 as Top Cryptos See Growth
- Top 5 Crypto Performers: NEO, LTC, BTC, ETH, XMR
- Hodler’s Digest, June 10–16: Top Stories, Price Movements, Quotes and FUD of the Week