This week the price movement of Bitcoin was like a roller coaster — the price of the cryptocurrency has jumped to 20 percent in just a few days.
Large changes in the value of the asset is a prerequisite to open a profitable trading position, in fact so a trader can earn more money in short period of time.
Naturally, most market players did so. Their high activity has led to the fact that Bitcoin has set a new record for trading volume — the total amount of transactions on exchanges for the day. We will remind, during the peak of the previous bullrun the amount of traders ‘ transactions was almost twice smaller. Let’s look at why this event is so important.
How is the stock market?
Cryptocurrency in your wallet is only valuable because someone wants to buy it at a certain price. Naturally, the more coins you have, the more buyers you need. And the demand for an asset should be high in order to sell more expensive coins.
If there are no buyers, you will not be able to liquidate their stocks of bitcoins, and therefore the liquidity of the cryptocurrency is reduced to zero. The magnitude of liquidity trading is characterized by the volume or amount of transactions, as already noted above. In other words, a new record for trading volumes of Bitcoin makes the stock market more attractive for big players, because they can sell more of their coins.
So by the end of yesterday trading volume of Bitcoin reached 44 billion dollars, according to CoinMarketCap. A large number — especially in comparison with the results of the end of 2017. Recall, that’s when BTC rose to almost 20 thousand dollars, but at that time, its trading volume was “only” $ 24 billion.
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