What is the term for a situation where a cryptocurrency undergoes a significant and often sudden change in price?
Answer:
The term used to describe a situation where a cryptocurrency undergoes a significant and often sudden change in price is called a “price volatility”. Price volatility refers to the degree of variation in the trading price of a cryptocurrency. Cryptocurrencies are known for their high volatility compared to traditional assets like stocks or commodities. Various factors contribute to the price volatility of cryptocurrencies, such as market demand, supply, regulatory changes, security breaches, and market sentiment. Price volatility can present both opportunities and risks for investors and traders in the cryptocurrency market. It is essential for individuals involved in cryptocurrency trading to be aware of and manage the risks associated with price volatility to make informed investment decisions.