Traders Flock to Safe Haven Bitcoin [BTC], Matic’s Trading Volumes at 18K BTC

Bitcoin BTC Safe Haven

Matic token holders had a bad day in office yesterday. With the token nosediving, posting double-digit losses and price action threatening to make an example out of expectant HODLers, fear and panic gripped the market.

 According to market observations, an analyst concludes that traders and investors are more active, exchanging the token back and forth for Bitcoin and other liquid assets. While Matic is down 56% week-to-date, trading volumes and the number of transactions is high, a boost and a pointer of improving market sentiment and liquidity.

Spike in Trading Volumes

It can be argued that Matic’s sharp rise in trading volumes and transactions could be because of FUD and exit to safe havens like Bitcoin. Traders have been active and riding the impressive bull run over the last eight months. For perspective, Matic’s prices soared, rallying from 49 Sats to 555 Sats posted on Dec 6, a 11X expansion. During that time, volumes followed suit.

Matic Network

Yesterday, as shown from the volumes chart, there was a sharp spike in liquidation volumes. With prices plunging from Matic peaks with high trading volumes, today’s volumes are relatively suppressed and down 60% indicating that participation has tapered. In the past 24 hours, $138,128,513 or 18,986 BTC has been posted.

Also, transaction count has maintained an upward trajectory and stands at 811.

Matic Network

The same can be observed in almost all other altcoins. Take Algorand for example. Despite the dump right after listing and shift to Bitcoin days after listing at Huobi, trading volumes are steady. This means there is investor confidence and traders are not fazed by low pricing.

Algorand

At spot rates, ALGO is changing hands at 3,905 Sats, down from 24,637 Sats it opened at upon listing on Binance.

Exchanges Known for Faking Volumes

Volumes play an important role in cryptocurrencies. With deep volumes, the liquidity of the asset and its ease of trading drastically improves. Bitcoin is the most liquid and has derivatives products developed around it. The same cannot be said about altcoins given their fragility and lack of regulator’s clarifying comments on whether they are securities or not.

A finding noted that most exchanges fake volumes in a manipulative tactic called wash trading. Wash trading is bots buy and simultaneously sell an asset with the sole purpose of feeding misleading information to traders and the investor community.

Even though altcoin trading volumes have notably increased as aforementioned, not many are convinced and advocate caution.

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