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Volatility refers to how quickly and how much the price of an asset changes. It is frequently employed as an effective indicator of the investment risk associated with an asset because it is a measure of the quickness and degree of price movements.

Cryptocurrencies are significantly more volatile than most other asset classes because to their digital origin, current low level of regulation, and lower market size. As a result of wider adoption and market expansion, as well as more regulation, volatility in cryptocurrency markets is projected to reduce in the long run.

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