How Much Bitcoin is Traded Every Day?
- Written by News Company
The average daily Bitcoin trading volume has attained new highs since April, 2019. According to Kevin Rooke, an independent crypto researcher, the number was only $6.25 billion in November of 2018 when the prices plunged due to the hard fork fiasco. Because of the crash, the trading volumes had been visibly less during June-October 2018 and finally, in November, the numbers dwindles even lower, coming down to $3100 in December. From November 2018 to June 2019, the numbers were static and this reflected low trader presence. But, from February 2019 onwards, the figures started to change and became almost impressive in March. If you want to jumpstart your trading and buy bitcoin instantly, check out xcoins.
Rooke is of the opinion that Bitcoin daily trade volume is booming as the volume has gone up considerably in the last year and half. Volume indicates investor presence, and the 2018 crash had made things really difficult. Negative reports by the media and globally renowned economists made matters worse and this had affected the Bitcoin’s trading volume.
As more investors started to come in during January there was sign of recovery and the volume surged in the months of February and March. Daily trade volume surpasses $11 billion. The average market price is $3951 but the return in terms of volume has shown that investors are not losing their interest in the Bitcoin regardless of unfavorable market conditions. Earlier, the trade volume used to be closely related to Bitcoin prices, but now, one can see that this connection is no longer there after the November incident when trade volumes did not go down despite price fall. Bitcoin prices are down to half of what they were in November 2018, but trading volume remains above $11 billion. The investors have started using automated software applications to enjoy the benefit of quick and convenient trading. Here is a well structured bitcoin profit review that provides you with sufficient information about this automated software application.
An analysis brought out by Bitwise in 2019 showed that 95% of Bitcoin trading is actually faked by the unregulated exchanges. This survey was reported by Wall Street Journal and it shows concern expressed by regulators who feel that the market is still prone to manipulation. Mathew Hougan who heads the research team at Bitwise said that the market looks like a mess since the data being examined is manipulated. A significant part of the volume that was reported in as many as 71 out of 81 exchanges shows wash trading. This is a term used to describe an individual who is buying and selling the same stocks or Bitcoins at the same time to create an impression of market activity. So, this is concocted and not real. These exchanges reported a total of $6 billion in average daily trading of Bitcoins. However, the study by the research team has found that only $273 million is legal. Since most of the cryptocurrency trading sites do use identical monitoring tools like stock exchanges do, Jay Clayton, the SEC Chairman has warned investors that they may not get a proper assessment of the Bitcoin’s price.