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What makes crypto so volatile?
What makes crypto so volatile?
Updated over a week ago

Volatility refers to changes in the price of an asset, such as cryptocurrency or stock. Low volatility means the price stays relatively stable over time, and high volatility means there can be more extreme sudden price movements in either direction.

Cryptocurrencies are known for their high volatility, but what causes it? Many of the same factors that cause volatility in the stock market also apply to cryptocurrencies, such as:

  • News events and speculation, including talk of government regulations or security breaches

  • Uncertainty of future value

  • Less liquidity in the market

Since crypto is a relatively new market, it takes less input from any of those factors to cause major swings in a cryptocurrency’s value. We’ve added Volatility Reminders to the cryptos we offer so you can make decisions with context.

If you ever have questions, the team is always here for you, so feel free to give us a shout on the app’s Chat or via email at

To trade cryptocurrency via the Public mobile app or website, you must first open an account with Bakkt Crypto. All cryptocurrency account, trading, and custody services are provided to you by Bakkt Crypto.

Cryptocurrency services on Public are provided by Bakkt Crypto Solutions, LLC (“Bakkt Crypto”). Your cryptocurrency assets are held in your Bakkt Crypto account, and Bakkt Crypto handles your cryptocurrency orders. Bakkt Crypto is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter. Bakkt Crypto is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Open to the Public Investing (“Public Investing”), which holds US-listed stocks and ETFs. Public Investing is a registered broker-dealer and FINRA member, and is not affiliated with Bakkt Crypto.

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