Definition ∞ Volatility Metrics are statistical measurements used to quantify the degree of price fluctuation of a digital asset over a specific period. These metrics, such as standard deviation or beta, help assess the risk associated with an asset. High volatility indicates greater price swings, while low volatility suggests more stable prices. They are essential tools for risk management and investment analysis.
Context ∞ Volatility Metrics are constantly analyzed and discussed in cryptocurrency news, providing critical insights into market sentiment and potential investment risks. Debates often concern the appropriate methodologies for calculating volatility in nascent digital asset markets and its predictive power. Future developments include more sophisticated models that account for unique crypto market dynamics and machine learning approaches to forecast price movements.
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