Volatility is exchange rate fluctuation. For Bitcoin, it is quite high. For example, in December, the price of the coin more than doubled, after that, it went down. These fluctuations are called volatility.
So why is Bitcoin so volatile? There are several reasons:
🔸 Bitcoin doesn’t have a base value to which it could return, like stocks, for example;
🔹 the cryptocurrency market, like any other, is subject to manipulation by those who own large amounts of coins;
🔸 prices may change depending on news and events in the world;
🔹 the crypto market isn’t fully understood and digital money is just beginning to take its place in the global economy.
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