When does the currency circle become more volatile?

The volatility of the currency circle is greatest during the following time periods: Block reward halving events Large exchanges or protocol upgrades Regulatory news Major market events Market sentiment

The time period with the greatest volatility in the currency circle

The volatility of the currency circle is usually affected by various factors, resulting in different fluctuations in different time periods.

1. Block reward halving events

Bitcoin and other cryptocurrencies’ block rewards are regularly halved, which reduces the number of tokens entering the market , thereby increasing demand and pushing up prices. These events usually trigger significant fluctuations in the currency circle.

2. Upgrades of large exchanges or protocols

When large exchanges or protocols undergo major upgrades or changes, it may lead to market uncertainty, resulting in Volatility. For example, the collapse of Terra Luna in 2022 led to a massive sell-off in the cryptocurrency community.

3. Regulatory News

Government decisions to regulate cryptocurrencies can have a significant impact on market sentiment, leading to volatility. For example, China banned cryptocurrency trading in 2021, causing the market to plummet.

4. Major market events

Global economic events, such as wars, economic recessions or major news announcements, will also have a chain reaction on the currency circle, leading to increased volatility . For example, the Russia-Ukraine conflict in 2022 led to severe fluctuations in the cryptocurrency market.

5. Market Sentiment

The currency circle is highly dependent on market sentiment, and fear and greed may lead to extreme fluctuations. For example, the 2021 bull run in the cryptocurrency market was driven by extreme greed, while the subsequent bear market was dominated by fear.

Other factors:

• Whale trading: The buying and selling operations of large holders or institutions will cause market fluctuations.
• Technical Analysis: Traders use graphs and indicators for technical analysis, which can influence market sentiment and lead to volatility.
• Manipulation: Market manipulation, such as rug pulling, can also increase volatility.

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