Effect of the Volatility of the Crypto Currency and Its Effect on the Market Returns

Abstract

In this study, cryptocurrency is a type of digital money that uses cryptography to protect transactions, limit the production of new units, and verify asset transfers. The focus of this research is to see how volatile Bitcoin exchange rates and returns. The standard deviation of logarithmic returns is calculated to gauge volatility. The finding of the results was based on the Shapiro-Wilk test that was employed to predict normality in this investigation. In addition, the box-whisker plot and statistical process control chart were used to find high volatility. Volatility is now regarded to be a high value. Eventually, Because of the current high level of volatility, investing in Bitcoin is seen as a high-risk endeavor. The purpose of this study is to assist investors in developing a strategy that maximizes returns while minimizing risk.