Crypto trading volume ultimately exploded last May, and enthusiasm for digital currencies has grown heavily over the past few months. This is refreshing considering bitcoin has ultimately dropped by more than $1,000 in the past week.
From Zero to Hero; Bitcoin Doubles Its Price in Just a Few Months
Back in April, bitcoin reached a new pinnacle. 2018 had been a bad year for both bitcoin and other forms of crypto. The currency had fallen from its all-time high in December 2017 of nearly $20,000 and hadn’t managed to gain any serious traction in the 12 months that followed. In fact, drops were becoming a constant with entities like bitcoin to the point that in November 2018, the currency ultimately fell by more than 80 percent and was trading at roughly $3,500 for several weeks.
In April the following year, however, things took a very positive turn. After longwinded and negative ideas centering on bitcoin’s demise and the idea that it would never recover, the granddaddy of all digital currency ultimately grew beyond the $5,000 mark. The move was very unexpected and put the currency back on the bandwagon with many traders and enthusiasts, who felt the future held a positive outlook at last for the asset, but things didn’t quite stop there.
In the coming months, bitcoin continued to grow, reaching $6,000, then $7,000, then $8,000 and even briefly hitting the $9,000 mark before falling back into the $8,000 range. While $9,000 has proven to be a difficult barrier to break, the currency is trying hard, and many analysts remain bullish about bitcoin, stating that further price hikes will occur before the year is out.
The recent fall that bitcoin has experienced is being labeled as a simple “pullback.” Enthusiasts and traders are being warned not to fall into a panic and assume that all is lost with the coin. These things happen, and bitcoin is merely taking time to settle from the recent selloff that occurred just last week. They are confident that this is simply a reverse step the coin is taking, but that further jumps will occur down the line.
Trading Volume: What’s Real and What Isn’t
However, there is also a warning that most of the reported cryptocurrency trading volume (roughly 86 percent) is potentially fake. One should always take the documented results with a grain of salt. At the same time, most of the activity reported on major exchanges such as Coinbase, Bitstamp, Gemini, Bittrex and Kraken appears to be solid, while an additional ten percent of activity occurring on non-documented exchanges also contributes to the more “real” volume not always recorded by Bitwise-vetted exchanges.
Thus, it can be safely said that trading is relatively high, and that enthusiasm for bitcoin and most other major cryptocurrencies is at a healthy level.