#CryptoCPIWatch

Why is crypto so volatile? 🎢

Volatility refers to how quickly and unpredictably the price of an asset changes over time. In crypto, volatility is much higher than in traditional markets like stocks or commodities.

That means it's not unusual to see a token jump 20% in a day, or drop just as fast. 📈

But why does this happen so often in crypto?

Here are the main reasons:

🔹 Lower liquidity

Crypto markets have fewer buyers and sellers than traditional finance. That means a single trade can move the price more dramatically.

🔹 24/7 trading

Crypto markets never close — they operate day and night, including weekends. Prices can react instantly to news, social media, or sudden buying and selling.

🔹 Speculation and hype

A large part of the crypto market is driven by emotion, hype, and fast profits. That leads to sudden price swings, especially around trending tokens.

Volatility is normal in crypto. The key is understanding why it happens, so you can stay informed, not emotional.

As always, DYOR. 🧠