Elevated Volatility

Definition ∞ Elevated volatility describes a market condition where asset prices experience unusually large and rapid fluctuations over a short period. In cryptocurrency markets, this often signifies increased uncertainty, significant news events, or shifts in investor sentiment. Such periods present both heightened risk and potential for substantial gains or losses. It is a key indicator of market instability or rapid directional changes.
Context ∞ Elevated volatility is a recurrent theme in crypto news, particularly during periods of macroeconomic shifts or significant protocol updates. Discussions frequently center on its causes, such as large liquidations or unexpected regulatory announcements, and its implications for market participants. Understanding these periods provides immediate, actionable context for assessing risk exposure and market opportunities within the digital asset space.