Global Market Volatility

Definition ∞ Global market volatility describes periods of rapid and often unpredictable price fluctuations across various financial markets worldwide. This condition is typically driven by significant economic, political, or geopolitical events that create uncertainty among investors. It reflects a heightened level of risk and price instability. Such periods demand careful risk management from market participants.
Context ∞ Crypto news frequently reports on how global market volatility influences digital asset prices, highlighting Bitcoin’s role as a potential safe haven or a risk-on asset. Macroeconomic announcements, geopolitical tensions, and shifts in central bank policies are often cited as drivers of this market characteristic. Understanding this interconnectedness is vital for comprehending price movements in the digital asset space.