What is the relationship between the standard deviation of Bitcoin prices and market volatility?

1 answers

• Dec 17, 2021 · 3 years ago
  The relationship between the standard deviation of Bitcoin prices and market volatility is an important concept in the cryptocurrency market. The standard deviation measures the dispersion of prices, while market volatility refers to the rate at which prices change. When the standard deviation of Bitcoin prices is high, it indicates that prices are more spread out and there is greater price variability. This leads to higher market volatility as prices are more likely to experience significant fluctuations. Conversely, when the standard deviation is low, it suggests that prices are relatively stable and less likely to experience large price swings. Therefore, the standard deviation of Bitcoin prices can be used as an indicator of market volatility, with higher standard deviations indicating higher levels of volatility.
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