Bitcoin’s 24-hr Volume Beats 1 Year Record, Braces for Rise Above Psychological Level
After its wobbly performance almost throughout 2018, the crypto market could be entering a new cycle if it sustains the uptick seen in its 24-hr volume since Monday. The spike is mainly reflected in the global Bitcoin trade which charts show sees another 24-hour volume of over $10 bln after about 12 months.
The first time the 24-hour volume for Bitcoin trade in exchanges crossed $10 bln was on November 30, 2017 according to CoinMarketCap. The series of movements that followed afterwards saw the trade range maintained throughout the following month until the greater part of January 2018. It started to dip in the last ten days of January and went under by February only to spike once in the tail end of this month (Feb. 21).
Against all odds
The volume rise comes despite claims that monthly trading volume from exchanges that offer fiat pairs decreased by 26.5% in January to $37.5 bln while crypto-to-crypto exchange volume decreased by 7.2% to $132 bln according to CryptoCompare, a global cryptomarket data aggregator providing investors with real-time pricing data on coins and fiat pairs.
Its CEO, Charles Hayter, states in the latest edition of their Monthly Exchange Review released on Feb. 19, which evaluates the consistency and quality of exchange data:
“Despite market activity slowing, we are seeing increasing signs of a maturing crypto market, given that exchanges are setting up OTC trading desks, derivatives and index products. We continue to focus our efforts on providing retail and institutional investors with accurate data that they can trust as the basis for their investment decisions.”
The review states that in January, 48% of Bitcoin trading into fiat was made up of the US Dollar (1.47 million BTC), down from 57% in December. BTC trading into JPY too decreased less (-24%) than that traded into USD (-49%) and EUR (-37%) since December. It adds that the USD, JPY and EUR made up 90% of total trading from Bitcoin into fiat in the previous month and remained dominant in January at 89% of fiat volume.
To get its results, the CryptoCompare review records the 24-hour volume and price of every live trading pair and then compared them to the total market volume with an assigned market share ranking. Pricing for each pair is is placed beside its real-time Aggregate Index Methodology (the CCCAGG) pair to calculate a percentage price difference.
Despite recent optimism, crypto correlations remain strong.
Major coins still bearing a positive correlation to $BTC of about 0.8, which is very high.
Yet another sign the 🐻 market might not be over just yet.
— Mati Greenspan (@MatiGreenspan) February 19, 2019
Growing crypto interest
The results of a survey of online investors’ sentiment toward cryptoassets and traditional financial institutions released by eToro suggests that two-thirds of millennial crypto traders may have more faith in crypto than the stock market.
Crypto volume on global exchanges has since increased with Bitcoin adding about $6 bln to its market cap in two days. In all, daily volume across global crypto exchanges is tracking approximately $35 bln at the time of this writing, a level not seen since last April. The development has even emboldened some market players to suggest the positive indicator displayed across the board could help Bitcoin price (currently at $3992) rise above the psychological level of $5,000.