K33 Research: Bitcoin trading volume may explode soon

According to data from cryptocurrency research firm K33 (formerly Arcane Research), Bitcoin has exhibited rare stability, with its five-day volatility lower than major traditional assets such as Nasdaq, SP 500 and gold. Meanwhile, Bitcoin’s 30-day volatility is currently near five-year lows. But the firm said periods of high volatility have historically occurred when bitcoin’s volatility has subsided. This suggests that the current period of low volatility may soon be over, and the future may see larger price swings or trading volumes. "My short-term view is that volatility pressures in the market are about to peak and an outbreak is imminent," K33 senior analyst Vetle Lunde said in a report. Some known catalysts could "ignite the volatility bomb," but more often than not a purely structural squeeze is what drives the trend, analysts said.