In the midst of all the humdrum and excitement of the king coin surpassing several resistance levels, a significant indicator soared. The Bitcoin price, currently over $7,500 is now on a nine-month high, while the trading volume surpassed its yearly high.
On May 12, as Bitcoin broke past $7,200 all the way over $7,500, the coin saw its trade volume spike to $30 billion. To put that staggering sum in context, the last time the 24-hour trading volume of the top cryptocurrency was that high it was January 2018, when the price of Bitcoin was well over $10,000.
Jonathan Habicht, the founder of Blockfyre, attested to the above stating:
“$29 Billion in $BTC volume was traded today. The previous high of $25.5 billion was set on Jan 8, 2018.
Technically more BTC could have been moved as prices have historically been lower. But today was record volume.”
The Blockfyre founder added the below chart depicting the spike in trade volume on May 11 and May 12, based on a cumulative of Gemini, Bitstamp, Bitflyer, Kraken, Coinbase among others.
The trading volume broke past the $20 billion-mark on May 11 and then continued to rise reaching $25 billion by 1500 UTC on the same day, with BTC on the verge of $7,000. As the cryptocurrency defied even the loftiest of expectations and broke past $7,200 and then continued to $7,500, the volume reciprocated and shot up over $30 billion at 0200 UTC on May 12.
However, as many cryptocurrency analytics firms, particularly Bitwise Asset Management, The Tie Group, and Messari, have pointed out, exchanges fudging volume are rampant, and hence trading volume “reported” by crypto-exchanges should be taken with a pinch of salt.
The infamous Bitwise report had pointed out that over 95% of exchanges fake volume. Additionally, CoinMarketCap, the famed crypto-price aggregator, on its reported volume listing boasts only two exchanges, BitMEX and Binance that post “real volume”, according to Bitwise’s 10 “real” exchanges.
On the basis of this recent revelation, the current volume numbers can be misleading. Habicht added that last year, when the volume was high, but not close to current numbers, there could have been “lesser fake volume” and hence a cautionary approach should be taken when evaluating the same.
“However it is possible that there was less fake volume before and therefore real volume is not higher today. I’m not stating this as a fact, only pointing out its a possibility. Anyway, #Bitcoin is alive.”
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