Why is Bitcoin’s price so volatile?
Bitcoin's price is volatile due to a combination of factors, including its relatively small market size compared to traditional assets, decentralised nature, and perception as a speculative investment. Additionally, news events, regulatory changes, market volatility and market sentiment can significantly impact Bitcoin's price, causing rapid fluctuations. As a result, short-term traders and crypto investors may contribute to the price volatility by buying or selling Bitcoin based on market conditions, emotions, or expectations, which can create a feedback loop that amplifies price movements.