No reason to invest in Bitcoin

The volume of trading in the most famous and expensive cryptocurrency in the world, Bitcoin (BTC), this month reached its lowest level in almost five years.

Experts attribute this to the lack of reasons for investors to invest in a digital coin.

closed advertising

Content will continue after ads


Bitcoin trading volume on all exchanges was 129,307 BTC on August 26, according to data from analytics firm CryptoQuant. Namely, this is the number of coins that were bought and sold during the day.

On August 12, it was 112,317 BTC, the lowest level since November 10, 2018. It is now down about 94% from its March high of 3.5 million BTC.

The highest single-day trading volume was in 2020, with over 5 million “bitcoins” bought and sold.

“Trading volumes decline during a bear market as private investors exit,” Julio Moreno, head of research at CryptoQuant, told CNBC, adding that the market is currently moving in a positive direction.

According to Coin Metrics, the price of Bitcoin has increased by 57% over the year and fluctuates around $26,000 per coin.

Overall, it has been a relatively bleak summer for the cryptocurrency industry. Unlike stock indices, digital coins did not grow in value at a rapid pace. In mid-August, there was even a sharp drop in value.

“Overall (the market) remains muted in anticipation of a new catalyst and overall market liquidity remains low,” Bernstein analyst Gautam Chugani said in a note on crypto trading last week on Monday, noting that digital coin market participants are not interested in active trading. cryptocurrencies. coin because there are not enough positive signals about the future.

Source link

Leave a Comment