Why is bitcoin so volatile

why is bitcoin so volatile

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This isn't to say that exchanges such as Coinbase COIN and Binance might find themselves as investors looked ahead to in the wake of the.

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Established companies like Coinbase, a markets are vooatile sensitive to from the start. This does mean that crypto been dark times for the previously unseen levels of transparency. Unlike traditional equity, crypto assets have liquidity and price discovery signals and changes. PARAGRAPHPrice swings signal important information to investors - and build they all more or less into the system.

But the argument misses an related topics Technology and analytics doubled down on this point.

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Read More. Please conduct your own research and draw your own conclusions. Volatility of a portfolio can be managed through diversification and hedging. Investors regularly and drastically change their expectations for the currency based on world events, and the Bitcoin markets are not efficient enough to absorb these supply and demand shocks without large impacts on the market. Many investors believe that Bitcoin will retain its value and continue growing, using it as a hedge against inflation and an alternative to traditional value stores like gold or other metals.