The euphoria that has surrounded the cryptocurrency markets since December is palpable. Bitcoin’s trading volume has doubled, as the largest cryptocurrency has allowed itself a breakthrough above 40k USD
Highest Bitcoin Trading Volume (BTC)
The news was shared by Mati Greenspan, analyst and founder of Quantum Economics. He explains that Bitcoin’s trading volume now greatly exceeds that of Bitcoin’s last great bull run (BTC):
“Bitcoin’s trading volumes on all exchanges have just doubled from their previous record highs. “
On Binance alone, the 24-hour volume exceeds $ 5.2 billion for Bitcoin, according to data from CoinGecko. The enthusiasm is therefore very present, even if a strong correction seems to be on the horizon, after these explosive few weeks. The quantity of Bitcoin sent to the exchanges is indeed also logically increasing, which could precede massive sales.
Bitcoin exceeds $ 40,000 before correcting
It must be said that the breakthrough of Bitcoin was particularly rapid. As of December 8, the largest cryptocurrency was yet to exceed $ 20,000. But a month later, she made a brief jump above $ 40,000. This new record was set on some platforms at the end of the day yesterday. Immediately after, however, the price of Bitcoin plummeted by almost 10%:
Around 8 am this morning, the price is holding above $ 38,000. Bitcoin’s very rapid take-off, however, has some analysts fearful of a sudden retracement. This is for example the opinion of Josh Rager, the founder of Blockroots, who estimates that BTC could lose 50% of its value and fall back towards the 20,000 dollars, before rising again.
The analysis is shared by Gavin Smith, CEO of Panxora Group, who told Reuters:
“The reality is that Bitcoin is far from being a magic money tree, nor is it immune to downward price movements. In fact, you can expect drops as high as 25% every now and then, as investors withdraw their profits. “