After the Bitcoin price collapsed by nearly 70% at the beginning of the year, that is left unnoticed by a large number of investors is the number of transactions that take place every day. If we need to specify, day-to-day transactions hit a record low of 150,000. By comparison, we can say that such figures were typical when the crypto traded around $500 in 2016.
According to some of the Crypto investors, after the boom in the price, that beat all the bubbles in history, we will now see a return to "normal values," after which the upward trend is likely to be preserved, but certainly not with that power we watched. If we look at the number of transactions and the 7-day average cost of Bitcoin, the correlation is positive, but not to the point where the value of the crypto-wave drops.
How will all this be? If volumes continue to decline, volatility will drop significantly, and will force a large portion of Crypto traders to stop trading, and this may lead to a significant drop in Crypto capital.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.