Cryptocurrency prices are subject to volatility in part due to their relatively small market cap, meaning that smaller amounts of money might affect the price more easily. It’s worth remembering that all new assets are subject to volatility, even gold was volatile in its early days.
However, volatility isn’t necessarily a bad thing. Many traders make a lot of money buying and selling cryptocurrencies through the market’s volatility. You can read our more in depth breakdown of the good and bad aspects of volatility and where Bitcoin gets its value from here.
It’s also worth noting that while Bitcoin is known for its volatility, the cryptocurrency has still shown gains of over 9,000% and was recognised as the best performing asset class of the last decade.