Definition ∞ Cryptocurrency Volatility describes the rapid and often significant fluctuations in the market prices of digital assets. This characteristic reflects the degree of price change over a given period, indicating both the potential for substantial gains and considerable losses for investors. Factors such as market sentiment, regulatory news, and technological developments contribute to these price swings.
Context ∞ Cryptocurrency volatility remains a primary topic in financial news, significantly influencing investment strategies and regulatory perspectives globally. Debates frequently address its impact on overall market stability, its role in asset classification, and the development of risk management tools designed to mitigate its effects for both institutional and individual participants. Understanding this aspect is key to navigating digital asset markets.