Why Are Bitcoin Prices So Volatile?
Life as a bitcoin (BTC) investor can be a bumpy ride. The world's most famous cryptocurrency has confounded commentators since its inception in 2009 to climb to mind-bogglingly high values, but bitcoin prices have nonetheless still been punctuated by a high level of volatility.
The wild price swings associated with BTC and the wider world of cryptocurrency has meant that, despite bitcoin's price hitting new all-time highs throughout the past year, many investors in the currency have lost money amid harsh pullbacks and wildly fluctuating processes.
Bitcoin has regularly suffered 30% to 40% bear markets across its short history. And although the cryptocurrency has become significantly more popular in recent months and years – with significant investments arriving from institutional investors and publicly traded companies such as Tesla (TSLA) and MicroStrategy (MSTR) – we can still see evidence of volatility.
In May 2021, for instance,
