Bitcoin trading volume soared along with its price
Bitcoin began the new year 2021 with a $35,000 increase, with BTC trading volume also surging.
The start of the new year turned out to be good for Bitcoin (BTC). The cryptocurrency moved beyond its historical peak, approaching the $35,000 mark. It is noteworthy that this dynamics developed against the backdrop of impressive trading volumes.
While at the time of writing the bitcoin price has risen about 15% in the last 24 hours. The increase in volume has been much more impressive. According to CoinMarketCap, a set of the largest market data in the world, Bitcoin trading volume has increased nearly 104% over the same period. This could potentially be an extremely positive signal for the world’s major cryptocurrency.
So how are things going with Bitcoin trading volume?
Interestingly, there were no specific catalysts for bitcoin performance growth that could be easily identified. Bitcoin has simply continued to grow since the beginning of the new year. During which time it has managed to strengthen by 20+%. What’s more, it simply developed the trend that was set in motion at the end of the 2020 weekend. Even then, the MTC exchange rate managed to rise several times to an all-time high for the day/week.
The most likely reason for the current rally is fear of herd instinct and missed opportunity (FOMO). Bitcoin is becoming more confident in the mainstream, and this fuels investors and speculators. They may feel that if they don’t buy bitcoins now, the train will fall behind them and miss the entire price increase.
It is also noteworthy that trading volume increased sharply from Saturday to Sunday. When institutions were resting and most companies had the day off. This could mean that retail investors are once again behind the surge in market activity.
Still, the current bitcoin rally is fundamentally different from the previous rally in 2017, which was led exclusively by retail investors. As we well remember, they later “fell off” the market and failed to keep MTC interest rates at a record high of $20,000.
This time, as the BeInCrypto editorial board has repeatedly stated, the big players and investors have taken the lead in the cryptopolitical movement. Recently, the main factors contributing to bitcoin’s position have been indicative of the growing interest of institutional investors.
In addition to widespread financial uncertainty and volatility, Bitcoin has begun to attract young people as a hedge and protection against inflation. In the last months of 2020, a number of excellent companies, including MicroStrategy, bought Grayscale for cryptocurrency. Standard Chartered and Fidelity have also increased their positions in the cryptocurrency market.
As more established companies invest some of their reserves in MTC as part of their diversification strategy, Bitcoin will get more attention. This will support its continued growth and attract more retail investors and players, as confirmed over the weekend.