Volatility Outlook

Definition ∞ Volatility outlook describes the anticipation or forecast regarding the degree of price fluctuation an asset or market is likely to experience in the future. This outlook considers historical price behavior, macroeconomic conditions, and upcoming events that could influence price swings. It is a forward-looking assessment of market uncertainty.
Context ∞ The current volatility outlook for digital assets is a key consideration for investors and analysts, often shaped by geopolitical events, regulatory developments, and monetary policy shifts. Discussions frequently revolve around implied volatility metrics derived from options markets and the potential for significant price movements. Assessing the volatility outlook helps in understanding the risk environment and potential trading opportunities.