Price Turbulence

Definition ∞ Price turbulence describes a market condition characterized by rapid, unpredictable, and significant fluctuations in asset prices over a short period. This instability often results from heightened uncertainty, speculative trading, or unexpected news events. It creates an environment where price direction is difficult to ascertain, increasing risk for market participants. This state reflects a lack of market consensus.
Context ∞ In cryptocurrency markets, price turbulence is a common occurrence often driven by macroeconomic shifts, regulatory announcements, or major liquidations. News reports frequently highlight periods of high price turbulence as indicators of market instability or potential opportunities for short-term traders. Understanding the factors contributing to price turbulence is essential for assessing risk and volatility in digital asset investments.