Bitcoin exchange traded volume falls to lowest level in two years - but the price continues to rise
According to data from Blockchain.com exchange-traded volume (USD) has fallen to the lowest levels in two years.
Interestingly, it comes on a day that Bitcoin rises 3%. It has been said that the reason for this is due to traders holding on to Bitcoins as the price continues to rise.
Last month seemed to be the first month in the last three years when there is a significant discrepancy between volume and price
Adding to this the chart from data.bitcoinity.org also shows it has been a slow month on the exchanges with only January and February showing lighter volumes when looking at all currencies. It is an interesting anomaly as this means the price is rising again but with fewer participants in general and higher supply from miners.
If volume decreases but the bid gets higher it can only mean people are willing to pay more for their BTC and sellers are prepared to wait for higher prices. Either way, last week was one of the weakest in terms of volume for the last 2 years and this week we have seen a significant price rise If you ever needed clues it seems something big is on the horizon.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
