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Cryptocurrency Market Volatility: A Comparative Study with Traditional Assets

Author(s):Ishaan R. Choudhary1, Meera T. Bedi2, Kunal S. Kapoor3

Affiliation: 1,2,3 Department of Finance and Management, Northern India Institute of Finance, Lucknow, Uttar Pradesh, India

Page No: 19-22

Volume issue & Publishing Year: Volume 2 Issue 2,Feb-2025

Journal: International Journal of Advanced Multidisciplinary Application.(IJAMA)

ISSN NO: 3048-9350

DOI: https://doi.org/10.5281/zenodo.17330861

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Abstract:
Cryptocurrencies have emerged as a significant component of modern financial markets, attracting global attention due to their high returns and inherent volatility. Unlike traditional financial assets such as stocks, bonds, and commodities, cryptocurrencies are highly speculative and sensitive to market sentiment, regulatory changes, and technological developments. This study investigates the volatility patterns of major cryptocurrencies, including Bitcoin, Ethereum, and Ripple, and compares them with traditional asset classes to understand risk dynamics and investment implications. Using historical market data and statistical volatility models, the research evaluates the degree of market fluctuations, correlations, and potential risk mitigation strategies. The findings indicate that cryptocurrencies exhibit significantly higher volatility than traditional assets, underscoring the need for sophisticated risk management and portfolio diversification strategies for investors

Keywords: Cryptocurrency, Market Volatility, Traditional Assets, Risk Management, Portfolio Diversification

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