“ The degree of connectedness among cryptocurrencies changes over time and is higher during periods of market uncertainty ”
SAMUEL OUZAN PROFESSOR , NEOMA BUSINESS SCHOOL
The perceived role of Bitcoin as a diversification tool during market stress affects its volatility , as it attracts attention from fund managers and investors looking to mitigate risks associated with conventional assets .
Behavioural factors , such as the nominal price illusion , also play an important role in the cryptocurrency market . This means that low-priced cryptocurrencies are often more volatile than their high-priced counterparts . Thus , the price level per se also plays a key role in its volatility , pointing to the presence of irrational behaviour in the crypto market .
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