When the cryptocurrency winter started, the price of Bitcoin dropped significantly along with the trading volume. For the past few trading sessions, however, the price of Bitcoin has been recovering slowly against the USD. The trading volume has also been increasing in what appears to be an accumulation of BTC by thirsty investors.
Bitcoin (BTC) Price Today – BTC / USD
On Friday, the trading volume moved higher than $11 billion within a 24 hour period. This is the first time Bitcoins trading volume had moved that high in the past twelve months since the beginning of the cryptocurrency winter. It is 200% higher than anything we’ve seen in the last year. So, if you’re one of those who has been inputting queries like; is Bitcoin dead? It’s time to buy, relax and await a bull rally.
What Does The Spike In Bitcoin Trading Volume Say About The Future Of Bitcoin?
The last time the trading volume of Bitcoin was this high, the price of Bitcoin was hovering around $8,845. This is more than twice the current price of Bitcoin. Even if the price isn’t as high as it was 12 months ago, the trading volume shows that the interest of investors in Bitcoin is increasing dramatically. This means that even if the cryptocurrency winter isn’t over yet, traders are confident that a bull rally is coming and they do not want to be left out of the mix.
Before the November bear market that slashed the price of BTC is half, there has been a historical correlation between the price and trading volume of Bitcoin. When the war started and the price of Bitcoin fell, the trading volume did not fall; at least not as much as the price. This wasn’t just a Bitcoin thing. Other top cryptocurrencies in the industry fell in price but retained a relatively high trading volume.
This trading volume of $11 billion is not so far from the highest trading volume Bitcoin has ever had which is $23.84 billion within a 24 hour period. Bitcoin’s trading volume moved this high was in the first week of January when the price of BTC was hovering above $17,429.50 according to CoinMarketCapital.
Litecoin Trading Volume Is Also Moving Beyond The Price
Apart from Bitcoin, the trading volume of the cryptocurrency silver, Litecoin has also lost its relationship with the USD. This is obvious when you compare the price of LTC to the price of BTC. The price trend and trading volume of LTC started to change in November as well. The exchange trading volume for LTC, went from $600 million to $300 million when the price of LTC was in the $50 range.
Litecoin (LTC) Price Today – LTC / USD
On Friday, the trading volume of Litecoin went as high as $1.7 billion when the price of LTC was $58. This is far higher than what the volume was in November when the price of LTC fell as low as $30.
While the trajectory of Bitcoin and Litecoin are related, there is a key difference. You see the price of LTC has surged by almost 100% since November as the trading volume also increased. However, the price of BTC has only increased by 20%. Still, it means that the appetite for Bitcoin and other cryptocurrencies has increased in recent time.
What, in your opinion, is the cause of the change in the relationship between the price and trading volume of BTC and LTC? Share your thoughts in the comment section.