Crypto volatility trading guide: How to manage risk in unstable markets

The volatility of the crypto market is often thought to be on a scale of its own, with Bitcoin (BTC) and other cryptocurrencies frequently going through head-spinning price roller coasters. In the past few years, the world's leading cryptocurrency asset (and the primary gauge of the overall crypto market's performance), the BTC coin, has experienced wild price swings.

Reviewing just the last couple of years of Bitcoin’s price performance reveals a highly volatile pattern. Between early October 2023 and late March 2024, the cryptocurrency appreciated by 174%, a rate of growth that sounds nearly surreal to a stock market investor. By mid-September 2024, Bitcoin had lost around 21% of those March 2024 highs. It then experienced another price surge, rising 80% between mid-September 2024 and late January 2025. Then, yet another plunge followed, taking BTC’s value down 27% by early April 2025.

With a confident recovery following the April lows, Bitcoin was enjoying a strong uptrend — at least until early October 2025, when it pierced the psychologically significant $120,000 barrier. Yet just five weeks later, at the time of our review in mid-November, the world’s premier crypto is bouncing along at the $100,000 level, another sharp decline in a matter of mere weeks. 

What drives the volatility of Bitcoin and the overall crypto market — and how can investors shield themselves from it? In this article, we take a closer look at crypto volatility and the best ways to manage it.

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