Although some analysts have stipulated that Bitcoin’s volatility is a cause for concern, cryptocurrency trading firm Cumberland believes that volume matters most.

Cumberland stipulated that Bitcoin volume “remains absolutely massive,” given that approximately $50 billion worth of BTC derivatives are cleared daily on crypto exchanges. As a result, the firm believes that daily crypto activity could be at least $100 billion, almost a fifth of US stocks.

Source: Glassnode

As Bitcoin continues to oscillate between the $19K and $20K zone, volatility has dropped to the lowest level this year.

However, Cumberland suggested that the reduced volatility does not show a lack of interest in the crypto space because such an analysis “is deeply problematic” given that it “hides the critical difference between trading volumes and price volatility.”

The firm added:

“Recent volatility-driven concerns about the health of the crypto space likely stem from comparisons to the 2018 bear market, when volumes were dire. This time it is different.

BTC volatility?

With Bitcoin volatility levels hitting yearly lows, a spike could be on the horizon, according to Glassnode.

The provider of market knowledge explained:

“The Bitcoin market is primed for a burst of volatility, with both option and realized implied volatility falling to record lows. Futures open interest has reached record highs, despite liquidations being at record lows.”

There are also indicators that the volatility of BTC could explode, given that the daily Bollinger Bands (BB) To follow squeeze.

Source: Matthew Hyland

Meanwhile, Caue Oliveira, Lead Chain Analyst at BlockTrends, recently noted that BTC could be heading for a significant move as traders are itching for some change, Blockchain.News reported.

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