Altcoin Analysis: Highest Bitcoin Trading Volume Since April 2018

March 18, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The daily trading volume of Bitcoin reached a peak on Friday, March 15. On that day, Bitcoin was bought and sold for no less than $10.5 billion in 24 hours. That is the highest point since 25 April 2018.

A lot has changed since 25 April 2018. At that time the price was still at $8.850. Today, Bitcoin is traded for more than half of this price, $4.030 (according to CoinMarketCap). But the increase in trading volume is perhaps a sign that investors are not yet losing their interest in Bitcoin. Has the crypto rally started? A dip in the numbers.

Monthly average also considerably higher

Not only the daily trading volume is higher. Twitter user Kevin Rooke looked at the average daily trading volume per month. He noticed that considerable growth is also visible here. This growth can be seen mainly in recent months. And in no less than five days in March, trade volume was higher than $10 billion:

The increasing difference between price and volume

Something else is going on. In the majority of the year 2018, the trade volume still followed the price of Bitcoin. Rose the price? Then there was also traded for more Bitcoin. And if the price fell, less was traded.

But since November 2018 the opposite has happened. The value of Bitcoin was falling, but the trade volume was actually increasing. This can be clearly seen on the graph below (source: Coindesk). The black line represents the trading volume, the yellow line the Bitcoin price. The value of Bitcoin is now a lot lower than last year, but the volume is at the same point as at the end of April 2018.

Also with Litecoin

This difference is not only visible with Bitcoin. There is also a difference between price and trade volume at Litecoin. You can see that on the graph below. Today’s trading volume is about the same as in February 2018.

A side note: the price of Litecoin has risen faster since December 2018 than the price of Bitcoin. You can also see on the graph above that the volume of trade increases with the price. But in general, it is striking that the fall in the exchange rate did not lead to a decrease in the daily trading volume.

Will the value of cryptocurrency increase with the volume of trade or not? We will see it in the coming months.

Author: Marko Vidrih