Planning to invest in cryptos. Read this article to understand what makes cryptocurrency so volatile.
Cryptocurrencies have caught the fancy of investors. However, high volatility in the market makes many investors wary. For instance, the lowest price of the popular cryptocurrency Bitcoin recorded in the month of October 2021 was $ 43,292.9 (Rs 32,21,885.83 approx.) and its highest recorded in the same month was $ 66,967.1 (Rs 49,83,829.40 approx) – marking a huge difference. Other cryptocurrencies too have recorded volatility in their prices.
The one question that often bothers investors is – why is cryptocurrency so volatile? While it's true that the cryptocurrency market has been fickle right from the beginning, the last few months have been a particularly wild ride. Here are some factors that are impacting the trajectory of this emerging market: