Cryptocurrency Analysis Company Announces: “This Era In Bitcoin Is Very Different From The Previous Ones!”

bitcoin and cryptocurrencies Its volatility seems to have dropped a lot, causing analysts to warn of investor interest in the digital asset sector.

Cryptocurrency analytics firm Cumberland thinks it’s volumes, not volatility, that matters.

Cryptocurrency Analysis Firm Cumberland Argues Low Volatility Shouldn’t Worry

According to crypto trading firm Cumberland, volumes “continue to be absolutely massive,” though not at their highest level of the year.

Excluding spot and on-chain transactions and non-BTC related activities, around $50 billion in Bitcoin derivatives are traded on exchanges every day, making the firm suggest that daily activity in crypto could be more than $100 billion, or roughly one-fifth of U.S. stocks.

The company said in a statement on Twitter:

“The latest volatility-related concerns about the health of the crypto space are likely due to comparisons to the 2018 bear market, where volumes were dire. This time it is different.”

Various volatility metrics for the crypto space have been on the decline in recent days as the bitcoin price is stuck in a tight range around $19,000-20,000. An index showing bitcoin volatility has dropped to a year low.

However, Cumberland, the crypto branch of Chicago-based trading giant DRW, said that the conclusion to be drawn from this trend should not mean that there is a lack of interest in the digital assets space. According to the firm, this type of analysis is “extremely problematic” because it “hides the critical difference between trading volumes and price volatility.”

*Not investment advice.