Cryptocurrency Trading Volume Hits New Year Lows as Bitcoin’s Volatility Boosts Market Benefits
Bitcoin and cryptocurrency trading volumes have hit a new year low after a period of low volatility. During the last months, the price of the most important virtual currency fluctuated between $6,300 and $6,750 dollars.
According to a recent report published by the market research group, Diar, October’s trading volume was under $1 billion. Compared to the last year, this is a drop of 38%. Diar is a market research group that focuses on digital currencies.
However, this low trading volume is not only related to Bitcoin (BTC). Other virtual currencies such as Bitcoin Cash (BCH), Litecoin (LTC) and Ethereum (ETH) have also experienced low volatility figures in October.
At the moment, there is no information for investors about what can happen to the virtual currency market in the short term. Several speculative investors decided to leave the market, allowing Bitcoin and other virtual currencies to operate with an unusual stability.
Diar mentioned in the recently uploaded report:
“Bitcoin 30-Day volatility currently stands at under 1.5%, in stark contrast to the start of the year when it stood at 9%. Monero, the privacy-focused cryptocurrency is now the least volatile following Bitcoin at 2.7%.”
Compared to January, Bitcoin trading volume dropped 79%. Bitcoin Cash has also registered the fourth consecutive month low. Nevertheless, the so-called ‘remittance’ cryptocurrencies Stellar (XLM) and XRP registered the highest volatility.
However, in the near future, the Intercontinental Exchange is getting prepared to launch the Bakkt exchange. Apparently, the new platform is expected to go live in December this year. Additionally, in 2019, the U.S. Securities and Exchange Commission (SEC) could finally approve a long-awaited crypto or Bitcoin Exchange Traded Fund (ETF). This would clearly have positive effects in the crypto space, allowing virtual currencies to register new price increases.
Bitcoin is currently being traded close to $6,325 dollars and has a market capitalization of $110 billion dollars.