After the Bitcoin price collapsed by nearly 70% at the beginning of the year, that is left unnoticed by a large number of investors is the number of transactions that take place every day. If we need to specify, day-to-day transactions hit a record low of 150,000. By comparison, we can say that such figures were typical when the crypto traded around $500 in 2016.
According to some of the Crypto investors, after the boom in the price, that beat all the bubbles in history, we will now see a return to "normal values," after which the upward trend is likely to be preserved, but certainly not with that power we watched. If we look at the number of transactions and the 7-day average cost of Bitcoin, the correlation is positive, but not to the point where the value of the crypto-wave drops.
How will all this be? If volumes continue to decline, volatility will drop significantly, and will force a large portion of Crypto traders to stop trading, and this may lead to a significant drop in Crypto capital.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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