Crypto currencies are highly volatile



Historically, Bitcoin's value has been quite volatile. In a single day in May 2021, the price of Bitcoin plunged by about 30% before recovering to be down about 12%.2 But why is Bitcoin so volatile? Here are just a few of the many factors behind Bitcoin's volatility.

News events that scare Bitcoin users include geopolitical events and statements by governments that Bitcoin is likely to be regulated, as well as moves by prominent individuals and companies. For instance, tweets by Tesla Inc. (TSLA) CEO Elon Musk suggesting his company would no longer accept the cryptocurrency as payment for its vehicles may have prompted the massive sell-off described above.3 Bitcoin's early adopters included several bad actors, producing headline news stories that spooked investors.


VIP Contributor
Well cryptocurrency supposed to be volatile and that is what a lot of people like about it because the volatile nature of cryptocurrency make it very much possible for it to gain value ,depending on the demand and supply at that particular period of time, if not because of the volatility it might really be impossible for people to make money with cryptocurrency. so I can say it is of a great advantage to most investors.. just that people who doesn't know how to trade are likely to lose because of the high volatility in crypto .. That is why it is necessary to learn.


Valued Contributor
We cannot the volatility of the crypto market away. It is what makes it unique and intriguing. People who do not the volatility of the crypto market will think that they are already in big losses especially when the coins are running low. You do not lose your coin value until you sell the coins. It is similar to forex trading. You are not in losses until you close a trade that is running negatives. I learned that the hard way though