Question #132 ·
How does a $1 trillion market cap and $180 billion trading volume reflect Bitcoin’s volatility?
- Large capitalization with huge trading volume indicates high price fluctuation Right answer
- A trillion-dollar cap always ensures Bitcoin price remains fully constant
- Large cap and volume guarantee stable and low volatility always
Why is this the correct answer?
This is correct because a market cap near $1 trillion shows significant value at risk, and daily volumes of $180 billion mean lots of buying and selling. High turnover in a valuable asset tends to amplify price swings, reflecting volatility.