Systematic risk refers to the potential for loss that affects the entire market or a broad range of assets. In cryptocurrencies, this type of risk arises from factors that can impact the overall market sentiment and influence prices across various coins.For instance, regulatory changes, economic downturns, or major security breaches can lead to widespread selling among investors, causing a decline in the overall market value. Unlike specific risks, such as those affecting an individual asset or project, systematic risk cannot be reduced through diversification.Market sentiment plays a crucial role in systematic risk within the crypto space. Events like Bitcoin’s price fluctuations can set the tone for the entire market, affecting altcoins and other digital assets. Therefore, understanding systematic risk is essential for investors in order to navigate market conditions effectively and implement risk management strategies.