• 28 May, 2024
News

Bitcoin Trading Volume Skyrockets Amidst Price Surge: New Analysis

According to the latest crypto research platform Santiment, Bitcoin has seen a commendable surge in its trading volumes. This uptick in volume persists despite the cryptocurrency experiencing significant price increases, especially in Bitcoin itself. 

Although there was a minor dip on the day in focus, with Bitcoin decreasing by 0.66% to trade at roughly $27,234.11, per CoinMarketCap, the overall sentiment remains optimistic. The market might stabilize if Bitcoin sustains its current position in the $27K-$28K range. However, Santiment warned that straying from this range could introduce greater volatility.

This renewed vigor in trading comes as a surprise after a phase of reduced activity. A CNBC report shed light on this dormant period, revealing that Bitcoin’s trading volume sank to its most dismal level in nearly five years. A meticulous examination of the data from CryptoQuant, which encompasses both spot and derivatives exchanges, confirms this drastic decrease.

Bitcoin trading volumes, Source: CNBC

On August 12th, the amount of Bitcoin traded on exchanges plummeted to 112,317 BTC, a low that hadn’t been seen since November 10, 2018. This starkly echoes the 3.5 million BTC traded in March, marking a decline of 94%.

The rejuvenation of Bitcoin isn’t just a consequence of traders returning to the market, as political affirmations too have played a part. Vivek Ramaswamy, the Republican Presidential candidate, has been vocal about his positive outlook on Bitcoin’s trajectory. This sanguine perspective came from Grayscale’s landmark legal triumph against the Securities and Exchange Commission (SEC).

Ramaswamy, a conservative business magnate who has often expressed his reservations about the government, stated that there’s an excessive reach by the “shadow government” in Washington. He believes that federal courts stand as the last bulwark against potential oversteps by governmental bodies.

U.S. Treasury Unveils Controversial Tax Proposal For Crypto Read Previous

U.S. Treasury Unveils Controversial Tax Proposal For Crypto

Optimism (OP) Partners with Circle to Introduce Native USDC to OP Mainnet Read Next

Optimism (OP) Partners with Circle to Introduce Native USDC to OP Mainnet