Contradicting Views As Bitcoin’s Volume Nears Yearly Low
The decline has led to stagnation of activities in the crypto sector.
Bitcoin’s Volume Drops Significantly In 2 Days
A review of the market in the last 48 hours shows that bitcoin’s volume is about to hit its lowest point this year. The volume has dropped significantly from $5 billion to $3.8 billion. The drop seems to continue. In the event, the volume, declines by about 15%, the lowest mark for bitcoin this year will be achieved.
Many are concerned with the decline. The drop confirms the short-term upward trend witnessed back in August. Since that period, bitcoin has remained stable despite being supported by low trading activity.
According to investor, Roy Blackstone, it is time the largest crypto started showing prowess in terms of volume, price and trading activity. The market depends on this factors to remain stable. Blackstone explained that the altcoin season is not yet here for bitcoin show its real capabilities.
Despite the dropping bitcoin volume, crypto markets are yet to see any speculations from investors. We are yet to have a sudden increase in demand for bitcoin from retail traders.
Normally, a section of traders usually dashes to buy cryptocurrencies that have dropped from their all-time recorded. The purchase is usually recorded on many cryptocurrency exchange platforms. This trend is normally witnessed in the rare occasion when we have a permanent descending trend but with an expected short-term bullish run.
Previously, bitcoin had for a short period resisted the descending trend last week. The trend was short lived from its high of $6,700 and dropped back to $6, 400.
Developments at bitcoin have negatively affected other smaller cryptos in terms of market cap. Tokens such as Rchain, WanChain and Nano are struggling in the wake of bitcoin’s dropping volume. Other top tokens declined by at least 5% in value when compared to the dollar.
Analysts have come out to explain their take on this development. According to CryptoYoda, the drop is an indicator that an influx of capital into tokens was around the corner. He said that bitcoin might have already achieved its top an indicator that capital is now moving from bitcoin into altcoins.
At the start of this week, bitcoin managed to achieve the $6, 700 mark. From there, the crypto market has not seen much movement. The momentum that had been set by other tokens appear to have toned after bitcoin’s volume started dropping. Elsewhere, trading activities on major exchanges have been heading in the downward direction.