Definition ∞ Stock price volatility measures the degree of variation in a stock’s price over a period. High volatility indicates that a stock’s price can change dramatically and rapidly, while low volatility suggests more stable price movements. In the broader financial landscape, significant stock price volatility can reflect market uncertainty or specific company news. It is a key indicator of investment risk.
Context ∞ While primarily associated with traditional equities, stock price volatility in major markets often influences investor sentiment and capital allocation decisions, which can indirectly impact digital asset markets. Periods of high volatility in stock markets might lead some investors to seek alternative assets, including cryptocurrencies, or conversely, to reduce overall risk exposure. Cryptocurrency news frequently references stock market performance to provide context for digital asset price movements, highlighting interconnectedness.