The crypto market is an extremely volatile entity, and so are the crypto tokens. At some point, they would be skyrocketing in terms of price and value and at the very next week facing towards the earth free falling like crazy. This is how extreme the volatility factor is for the crypto market, but so it is for every other financial market out there, such as forex, stocks, or the commodity markets. Many cryptocurrencies over the past few days have managed to reach new all-time highs in terms of an immense boost of price and value, but at the same time, there are those which succumbed to the insane lows; investors like to call this event a deep.
Institutional investors continue to be tempted by the amazing returns the crypto market provides, and because of that, they have bought several dips in the recent few days and continue to do so as the correction element of the crypto market is active these days. Because of these recent corrections, Bitcoin has fallen all the way to $50K and even lower, but whales are adjusting for these corrections and therefore buying their favorite cryptocurrencies across the board, which results in Bitcoin and many other cryptocurrencies resurrecting from these fallen levels and performance pitfalls.
Volatility Factor is a Reality
It seems that people understand just how volatile the crypto market is and how dangerous it could be to direct all of their investment towards a dedicated cryptocurrency and not diversify their portfolio. But even so, they continue to abide by the game and play it with their whole heart because they know no other financial market can provide such amazing returns on the original investment made. With the addition of digital products such as exchange-traded funds and non-fungible tokens becoming available and in reach of investors, the monthly inflows of the crypto market are going sky high.
Many asset managers are directing their partners and clients to invest in the crypto market for the sake of diversifying their portfolios. It seems that these institutional investors and asset managers want their clients to play the game of chance with the crypto market while either making everyone some money or losing some, and so the game continues.