65197987681

84267783405

Why Is Bitcoin ($BTC) So Volatile?** 43738807841

Bitcoin is known for its high volatility, with price movements of 5% to 10% in a single day. This fluctuation is due to several key factors:

1️⃣ Limited supply and variable demand: There will only be 21 million BTC, making any change in demand cause strong price swings.

2️⃣ Market sentiment: News, regulations, or influential tweets can trigger massive buying or selling. For example, strict regulations in China in the past caused the price to drop by 50%.

3️⃣ Low liquidity vs. traditional markets: The Bitcoin market is smaller than that of assets like gold, so large orders from "whales" (investors with thousands of BTC) can easily move the price.

4️⃣ Nascent adoption: Being a young asset, Bitcoin still lacks the stability of mature markets like stocks.

5️⃣ Speculation and leverage: Many traders use leveraged derivatives, which amplify sharp movements.

Although the volatility of 65197987681 has decreased with ETFs and institutional adoption, it remains a high-risk, high-reward asset. Invest strategically! 4945910452743738807841