• Cryptocurrency market volatility and trading volumes follow the bull’s trend on the market.
  • While the volume data provided by cryptocurrency exchange may be overstated, the overall upside trend is confirmed by the futures market.

Bitcoin and all major cryptocurrencies surged on the weekend, triggering speculations on potential forces behind the stellar growth. The first digital asset hit the highest level since the beginning of May, 2018. Cryptocurrency market volatility also came close to an all-time high, having recovered from the record lows hit in April. 

Notably, the trading volumes are skyrocketing too, which means that investors join the new bull’s wave on the market. According to JPMorgan experts, Bitcoin trading volumes on crypto exchanges hit $725 billion, which is nearly four times as large as an average figure in 1Q2019. Moreover, it is almost twice as much as during the previous peaks in December 2017 and January 2018. The major altcoins like Ripple’s XRP and ETH also enjoy higher volumes. 

The credibility of the trading volume data may be questioned due to the recent scandal about fake volumes reported by major cryptocurrency exchanges. According to the latest research, published by Bitwise, only 5% of the reported volumes are accurate. Is these estimations are correct, then the real volumes of Bitcoin traded on the exchange in May are $36 billion rather than $725 billion.

In this context, aggregate volumes on both the CME and CBOE futures contracts may shed some light on what’s going on, JPM experts note. 

According to the bank’s estimations, around $12bn of traded volume on these two futures exchanges in May, which is more than twice as high as in April ($5,5 billion). This data suggests that the rise in trading volume is genuine, even if the total figures are grossly overstated by cryptocurrency exchanges.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bears take over and draw a bloody moon

Cryptographer and computer scientist Nick Szabo, has presented in his Twitter account a study on the "risk-benefit" ratio of different assets. The study used a Sharpe Ratio over four years Hodl period.

More Bitcoin News

ETH/USD bears flip the bulls, target shifts to $5

Ethereum Classic is facing the ultimate correction following a massive bull-run that had it hit January highs around $12 from December lows at $3.41. The persuasive urge upwards has, however, ended in losses due to a lack of ...

More Ethereum Classic News

Ripple's CEO sees an era of IPO in cryptocurrency industry

Ripple's XRP, the third-largest digital asset with the current market value of $9.4 billion has lost over 5% in recent 24 hours and hit the low of $0.2136 on Friday. XRP/USD is moving within a clear bearish trend amid expanding volatility.

More Ripple News

The Crypto Sector in selloff mode searches a support zone

Most of the cryptocurrency sector accelerated the losses after breaking the neckline of support that was holding their prices. The selling pressure was in almost all digital assets.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Bitcoin bulls and bear fight gets a tougher edge

The cryptocurrency market started the downside correction after a strong rally initiated by risk reversal play at the beginning of January and reinforced by various altcoin pumps...

Read the weekly forecast

BTC

ETH

XRP