The cryptocurrency market seems to be experiencing an increase in trading volume after registering new lows during the second half of 2018. On Friday, the cryptocurrency market experienced a trading volume of $11 billion, the largest trading volume registered since April 25. This shows that the bear market could be left behind in the coming weeks.
Trading Volumes Reach New Highs
Trading volumes continue to grow and reach new highs in almost a year. However, there is a big difference to what was happening a year ago. Indeed, in April 2018, Bitcoin had a price of $8,845 while now, each Bitcoin can be purchased for $4,000. Thus, this increase in trading volume that reaches new the highest point in almost 12 months, shows that investors are starting to be interested in the market once again.
In a recent article released by CoinDesk, it is possible to see that Bitcoin price and trading volume tend to be highly correlated. During periods of bull markets, the volume increased as well. If the market moved down, also trading volumes dropped. This is something that can be seen in other digital assets as well, including Litecoin (LTC).
Before Bitcoin’s drop to $3,000, its trading volume was close to $3.7 billion. At that time, Bitcoin had a price of $6,385 per coin. Now, being traded around $4,000, the trading volume more than doubled.
According to Sam Ouimet, Litecoin is experiencing a similar trajectory as Bitcoin and its trading volume. However, trading volumes started to deviate from Litecoin’s price trend in November, when the market dropped to the lowest point in more than a year. At that time, Litecoin was traded for around $50. The trading volume for this virtual currency was $300 to $600 million.
Meanwhile, Litecoin is trading at around $60 and it registered a trading volume of $1.79 billion in the last 24 hours. It is worth noting that Litecoin experienced a price increase of over 100% since it bottomed close to $23 in December 2018. In addition to it, Litecoin has been expanding in the market and has reached the 4th position as the largest digital asset in the space.
Now it is just time to wait and see what will happen with Bitcoin’s price. Will it start growing after the volume increase experienced in the last few weeks?
Source: Read Full Article