Volatility History

Definition ∞ Volatility history refers to the record of past price fluctuations of a particular digital asset over a specified period. This data helps analysts and investors assess the asset’s risk profile and predict potential future price movements. It is typically measured using statistical methods, such as standard deviation, to quantify the degree of price variation.
Context ∞ Volatility history is a fundamental metric frequently referenced in crypto news and market analysis to contextualize an asset’s price performance. Discussions often relate to how past volatility might influence investor behavior or inform risk management strategies. Understanding an asset’s historical price swings is crucial for making informed decisions in the dynamic digital asset markets.