Increased Market Volatility

Definition ∞ Increased market volatility refers to periods where asset prices experience rapid and unpredictable fluctuations. This condition signifies a heightened degree of price dispersion over a specific timeframe. It often results from uncertainty, significant news events, or shifts in investor sentiment. Such periods present both elevated risk and potential for substantial returns for market participants.
Context ∞ News regarding digital assets frequently reports on increased market volatility, which is a characteristic trait of cryptocurrency markets. The discourse often analyzes the underlying causes, such as macroeconomic announcements or major protocol upgrades. Understanding these periods is essential for investors seeking to manage risk exposure within the digital asset ecosystem.