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Volatility

The magnitude of the swings in Bitcoin's price over a given period.

Definition

Bitcoin's volatility measures how much its price fluctuates over a given period. It is usually expressed as annualized volatility (standard deviation of daily returns × √365). Bitcoin's volatility has declined structurally over time as its liquidity and institutional adoption grow, although it remains far higher than that of gold or equities. For corporate treasuries, volatility affects the book value of their balance sheet in the short term, but not the amount of BTC accumulated.

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