Why are the trading volumes of Bitcoin falling?
Some analysts and large traders believe that the trading volumes of Bitcoin are reduced intentionally.
Bitcoin was a tasty morsel, and then suddenly, it ceased to be so. This month, this currency is still traded above 10 000 dollars, but many experts argue that trading activity is declining, and this is particularly noticeable in the dollar segment.
Despite the unprecedented growth in hashing capacity, transaction delays are very low, and SegWit can help to clear the backlog. But this does not negate the fact that statistics indicate an increasing use of Bitcoin in costs, as well as the movement of BTC coins between exchanges.
In general, the currency trade was not at the best level, the sales volume was about 17 billion dollars per day, earlier, at peak moments, the daily trading volume reached 50 billion US dollars. The volume of GDAX in relation to the US dollar decreased to 9 000BTC, which makes the current price of the most popular crypto currency very shaky and prone to manipulation.
What is even more curious is that the Asian market remains as reliable as ever. Japan is still the dominant link for Bitcoin, as Japanese investors accumulate coins.
Reasons to reduce Bitcoin trading
Some believe that more stringent measures by the US Securities and Exchange Commission, as well as European authorities, can scare off traders, at least temporarily. Recent lawsuits against Coinbase and talk about disclosing information about users also frightened traders who do not want to provide their personal data.
Other experts believe that a lower volume of trade may indicate the intention of investors to keep the crypto currency in their portfolios, as they see much more benefit in the long term. Nevertheless, for many traders the crypto-currency market is at a crossroads. Either Bitcoin falls much lower, or one more bull race should be expected, perhaps because of the uncertainty, some traders chose a wait-and-see attitude.
Author: Andrey, analyst Freedman Club Crypto News
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