How Does the Volatility of Bitcoin Impact the Risk of Managing Its Custody?

High volatility increases the financial consequence of a custody failure. While volatility doesn't change the technical security of the keys, a loss or theft of Bitcoin during a period of rapid price increase means the trader loses a much more valuable asset.

It also increases the incentive for hackers and thieves, as the potential payoff for a successful breach is higher, indirectly increasing the practical risk exposure.