Bitcoin BTC, Cryptocurrency News

Cryptocurrency trading volume hits new all-time high

The 24-hour trading volume is a key indicator that many cryptocurrency traders often refer to. This represents the total amount of cryptos that changed hands over a certain period (24h) of time. Although the market is nowhere near all-time highs in terms of prices and market cap, the 24-hour volume has far exceeded the record-highs of 70B USD set on January 4th, 2018 at the height of the bull-run. The new all-time high was set at $93.7bn on May 12th, 2019. Bitcoin on its own accounted for more than 30% of that volume. The BitMex 24-hour volume also set a new record high of $10bn according to Arthur Hayes:

This increase in volume was able to drive Bitcoin’s price from $5800 to $7500 in just 5 days. This indicates a new interest in the cryptocurrency space. However, the question remains: was it retail driven or a result of institutional buying? 

The answer probably is a combination of both. However, as always retail most likely arrived near the top thanks to FOMO. The initiation of the rally and the new volume may have been caused by institutions front-running the larger key players like Fidelity Investments and BAKKT future clients that will be entering the crypto scene soon. Another theory behind this spectacular rise in prices could be inside information about the SEC finally accepting the VanEck Bitcoin ETF, a decision whose deadline was moved to the 21st of May 2019.

Image licensed via Shutterstock

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