Why Are Cryptocurrencies So Volatile?

Why Are Cryptocurrencies So Volatile?

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Bitcoin was worth $35,945 in June 2021. It increased by roughly 70% in four months to $61,374 in October 2021. Then it dropped to around $43,000 in January 2022, a drop of more than 27% in just two months. Even more… currently as of June 14, 2022, Bitcoin is worth just $23,168.48, losing more than 15% of it’s value in the last 24 hours.
You have most likely never seen or will never see such incredible volatility in any other traditional fiat currency. Not to mention, the high volatility of cryptocurrencies is one of the most discussed and critical features that both attracts and repels investors from entering and dealing with this market.
Investors accustomed to dealing with low volatility markets such as the stock market, gold, and other commodities regard cryptocurrency as a high-risk investment and are hesitant to invest. At the same time, some crypto investors find excessive volatility appealing because it offers the possibility of high returns. Several factors contribute to cryptocurrency's extreme volatility, including:
A Lack of Regulation.
Investor Attitude.
Limited Supply and Significant Holdings, Newness, and Others.

🕒 Timestamps 🕒
00:00 Introduction
01:48 Factors That Contribute to Cryptocurrency Volatility
01:52 Still At A Nascent Stage
03:12 Lack of The Governing Body
04:00 Investor Sentiment
05:12 Limited Supply & Major Holdings
06:10 News & Developments in the Financial Market
07:28 Government Regulations
08:19 Final Thought

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