The price volatility of Bitcoin has decreased drastically to a level it hasn't reached since three years ago. One major reason for the change in the price trend of bitcoin has been attributed to the presence of more high volume trading companies in crypto lately. High volume trading is a transaction system that makes use of algorithms to trade a large number of orders in milliseconds.
Bitfinex CTO, Paolo Ardonio said that BTC's low volatility could be traced down to high-frequency trading. He explained the indirect relationship between liquidity and volatility, stating that higher liquidity results in reduced price volatility.
