Crypto’s high volatility presents opportunities and risks, with sharp price swings influenced by liquidity, leverage trading, and whale activity. Traders rely on Bollinger Bands, RSI indicators, and Fibonacci retracements to predict volatility spikes. The crypto fear and greed index, volatility indexes, and derivatives market liquidations provide insights into investor sentiment. Institutional investors hedge volatility using crypto options, futures contracts, and stablecoin allocations. Risk-adjusted returns in high-volatility assets like meme coins and micro-cap tokens require strategic risk management.
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