Bitcoin Overall Volatility Has Dropped but Extreme Price Swings Occur More Often Than in 2018

WHY IT MATTERS

Volatility is a measure of how much an asset's price moves up and down — think of it like the choppiness of ocean waves. For Bitcoin, overall choppiness has gotten calmer over the years, similar to how a lake might settle as it gets bigger. But this report says that rogue waves — sudden, very large price moves — are actually showing up more often than they did back in 2018. For anyone learning about crypto, this is an important concept: even as a market matures and seems steadier on a daily basis, it can still experience sharp, unexpected moves. Understanding this helps set realistic expectations about how crypto assets behave compared to more traditional investments like stocks or bonds.