Few asset classes have been more volatile over the past several years than cryptocurrencies. Bitcoin, trading above $20,000 at the time of this writing, exceeded $50,000 for two brief periods in 2021—and fell almost as low as $30,000 in between. Other high-profile cryptocurrencies, such as Ethereum and Dogecoin, have experienced similarly dramatic highs and lows.
But cryptocurrencies are also exceptionally volatile over much shorter periods of time. Day-to-day price fluctuations of cryptocurrencies eclipse those of traditional currencies, stocks, and precious metals, and do so consistently across assets and time periods. This phenomenon is not entirely driven by the longer-term ups and
