Bitcoin trading volumes skyrocket along with its price



Bitcoin trading volumes skyrocket along with its price

Bitcoin trading volumes skyrocket along with its price

  • Against the background of bitcoin’s growth to new highs, trading volumes of BTC rose sharply.

  • Trading volumes soared by 100 +% in 24 hours.

  • There were no specific catalysts behind this growth – only general positive trends.

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Bitcoin began the new year 2021 with an attempt to storm $ 35,000, while the indicator of BTC trade volumes also rose sharply.

Bitcoin trading volumes skyrocket along with its price

The beginning of the new year turned out to be successful for bitcoin (BTC). The cryptocurrency continued to move its historic highs, coming close to the $ 35,000 mark. It is noteworthy that this dynamics was unfolding against the backdrop of impressive trading volumes.

If at the time of this writing, bitcoin has risen in price over the past 24 hours by about 15%, then the increase in volumes turned out to be much more impressive. According to data from CoinMarketCap, the world’s largest aggregator of market data, trading volumes on BTC increased by almost 104% over the same period. This could potentially be an extremely positive signal for the world’s main cryptocurrency..  

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And what, in fact, is the matter?

Bitcoin trading volumes skyrocket along with its price

Curiously, behind this rise in bitcoin performance, there were no specific catalysts that could be easily identified. Bitcoin simply continued to grow from the very beginning of the new year, having managed to strengthen by 20 +% during this time. Moreover, it was simply developing a trend launched at the end of the outgoing 2020. Even then, the BTC rate managed to repeatedly move its daily / weekly historical highs.

The most likely reason for the current rally may be herd instinct and fear of missing out on an opportunity (FOMO). Bitcoin is becoming more and more confident in the mainstream, and this is fueling a fever among investors and speculators. They may feel that if they do not buy Bitcoin right now, they will lag behind the train and miss the entire price increase.. 

It is also noteworthy that a powerful increase in trading volumes occurred from Saturday to Sunday – when the institutions were resting, and most companies had a day off. This could mean that retail investors were once again behind the surge in market activity..

Institutional support

And yet, the current rally in Bitcoin is fundamentally different from the previous bull rally in 2017, which was run solely by retail investors. As we well remember, they subsequently “dropped” the market, failing to keep the MTC rate at record highs reached around $ 20,000.

This time, as the editorial staff of BeInCrypto has repeatedly said, large players and investors took the lead in the rally in the crypto market. Recently, the main drivers of the strengthening of Bitcoin’s positions have become numerous evidences of a surge of interest in it from institutional investors.

In the face of widespread financial uncertainty and instability, Bitcoin began to attract them as a defensive asset and a hedge against fiat inflation. In the last months of 2020, many eminent companies, including MicroStrategy, Grayscale, were purchased with cryptocurrency. Standard Chartered and Fidelity also increased their positions in the cryptocurrency market.

Bitcoin trading volumes skyrocket along with its price

As more established companies invest some of their reserves in MTC as part of their diversification strategies, Bitcoin will receive more and more mainstream attention. This will support its continued growth and attract more retail investors and players – as confirmed this weekend..


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