Reduced Volatility

Definition ∞ Reduced volatility signifies a decrease in the amplitude of price fluctuations for an asset over a given period. This state indicates greater price stability and predictability, often making an asset more attractive to risk-averse investors. It suggests a maturing market or the influence of stabilizing mechanisms.
Context ∞ News concerning reduced volatility in digital asset markets typically highlights the increasing adoption of stablecoins, the implementation of new risk management protocols on exchanges, or the broader market’s shift towards more institutional participation. Such observations can signal a transition from highly speculative phases to more established investment profiles.