Why Are Altcoins So Volatile?
If you’ve ever watched altcoins jump 20% in an hour and then crash the next day, you’re not alone—altcoin volatility is one of the most shocking experiences for new investors.
But this volatility isn’t random. Many altcoins have small market caps, meaning a few large buy or sell orders can move the price dramatically. Most projects are also in early development, which makes them sensitive to news, hype, and community sentiment.
Another reason is liquidity. Unlike Bitcoin, which has deep liquidity on major exchanges, many altcoins trade on smaller pools. Low liquidity means prices move fast—up or down.
Add to that the role of speculation, early investor unlocks, and rapid technological changes, and you get a market that can skyrocket or collapse quickly.
Volatility is part of what makes altcoins exciting, but also risky. Always do research, diversify, and never invest money you can’t afford to see fluctuate wildly.
