Bitcoin volatility refers to the degree of variation in the price of Bitcoin over a specific period. It is a measure of how much the price of Bitcoin fluctuates, indicating the level of risk and uncertainty associated with trading or investing in this cryptocurrency. High volatility means that Bitcoin’s price can experience significant increases or decreases in a short amount of time, while low volatility indicates more stable price behavior. Various factors contribute to Bitcoin’s volatility, including market sentiment, regulatory news, macroeconomic trends, and the overall liquidity of the cryptocurrency market. This characteristic makes Bitcoin attractive to traders looking for opportunities to profit from price swings, but it also poses risks for long-term investors.
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