Bitcoin volume drops to 2020 average, not enough to support the price

Even though the price of the leading cryptocurrency is gaining upward momentum, there is not a lot of trading volume to support the price. The trading volume has plunged to this year's average.

There is no doubt that the past couple of weeks have been quite good for the price of bitcoin as it almost gained 10% when it reached from nearly $6,600 to $7,200 before retracing back to $6,764 at the time of writing. The 24-hour trading volume of bitcoin is $17.7 billion. 

 

Trading volume of bitcoin continues to drop 

According to the Arcane Research report, Bitcoin’s trading volume has been slowing down from quite a sometime now. The report shows that the 7-day average real trading volume continued to drop this week as well. An increase in the price accompanied by low trading volume is considered a bearish signal. Currently, the volume of the bitcoin market has reached the average volume of this year. 

 

Bitcoin Price continues to remain volatile

The price of the leading cryptocurrency has remained quite volatile since its drop to below $4,000 last month. When the volume of bitcoin kept dropping, the volatility increased quite rapidly. The 30-day volatility rate of bitcoin was at 9.3%, which is higher than last week. According to the Coin Metric’s data, bitcoin’s 30-day volatility stood at 0.10319, which is a six-year high. Bitcoin has witnessed massive swings in both directions in the last month or so. The global financial markets have also not been stable due to the coronavirus outbreak, as over 2 billion people are in some sort of lockdown all over the world. 

The crypto market has not been immune to the global pandemic, including bitcoin. The price of bitcoin crashed on 12th March, along with the global markets. The bitcoin mining industry also suffered because of the high volatility. The short-term prediction for bitcoin is still quite bearish, as it seems like it is still coupled with traditional markets. The price is expected to fall below the $5,000 mark in the coming weeks as financial markets continue to crash amid the global pandemic. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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