Cryptocurrency Market Sees Shift Away from Volatility
Solstice CEO Ben Nadarewski says that the cryptocurrency market is becoming less prone to extreme boom-and-bust cycles. He attributes this shift to increasing market liquidity and rising institutional participation, which are lowering volatility in digital assets.
Nadarewski points to a significant rise in liquidity across major cryptocurrency trading pairs. In fact, he claims that even during bear markets, the current level of liquidity is deeper than it was in the past, reducing the conditions that drove abrupt price swings in previous cycles.
The Solstice CEO also notes that the nature of the market has changed, shifting from speculative trading to a structure that brings in institutional money and household assets. He emphasizes that this shift is a welcome development, saying 'We do not want to go through 2017 again. The same goes for 2021. We do not want that kind of huge volatility.'