In the past few days, the cryptocurrency has risen sharply. Bitcoin has repeatedly broken through the two barriers of 7,000 US dollars and 8,000 US dollars. It once reached 8300 US dollars, and this year, the increase rate exceeded 110%.
As the market soars, the trading volume of trading currencies also rises.
The Odaily Planet Daily found that the overall market trading volume of bitcoin and digital currency has reached record highs. On May 16, the total daily trading volume of the cryptocurrency market hit a new high again, reaching 106.9 billion US dollars. These days’ data have broken through the previous historical highs. On January 5, 2018, the total daily trading volume of the cryptocurrency market reached 70 billion US dollars, a record high.
Among them, BTC, ETH, LTC transaction volume growth is particularly obvious. The Odaily Planet Daily found that among the top 10 currencies of the current market value, the single-day trading volume of BTC, ETH and LTC all broke the historical high.
On May 14, BTC reached US$34.9 billion. Today’s (16th) trading volume was approximately US$32.5 billion, after a record high of US$23.5 billion on January 6, 2018. On May 16, 2019, the ETH transaction volume reached $15.1 billion, exceeding the historical maximum of $9.797 billion on January 11, 2018.
Mainstream currencies are active and trading volume is high
The top ten currencies in the market capitalization, BTC, ETH, LTC trading volume is particularly prominent. As for other cryptocurrencies, such as XRP, the recent trading volume has not broken through the historical high.
Market participants generally believe that an important reason for the increase in trading volume is the increase in market incremental funds, which has led to active market transactions.
“In recent months, it has been a record high. This means that there is a lot of money running into the market.” OKex analysts believe that the main reason for the collective rise in digital currencies came from the rebound of low prices in the previous period before May. After May, due to changes in the global economic situation, the main driving force came from the risk aversion purpose of funds. In the cold winter of the market early this year, the price of many digital currencies has been lower than the average price before the winter. Driven by good news such as IBM, Facebook and other large companies announced to enter the digital currency field, the platform currency rose at the beginning of the year, the market gradually got rid of the pessimism in the bear market some time ago, so the price of digital currency ushered in rising.
Digital currency brokerage 1Token senior analysts believe that BTC is favored for three reasons: First, Bitcoin will be halved again in May next year, according to historical experience, each halving will open a round of halving; second is Institutional investors are running into the market this year. For example, grayscale investment company grayScale Investments, its bitcoin investment trust, hit a new high of $140 million in the year on 5.13, including CME bitcoin futures and Grayscle are strictly regulated. The common investment tools of institutional investors; the third is the impact of trade wars, active funds need to find a way out or hedge, Bitcoin bears part of this function.
The future analysts of the blockchain asset management platform said that the increase in trading volume was mainly caused by quantitative institutions and market makers. He explained that early quantitative institutions and market makers frequently traded in the recent market, causing the total volume of transactions to continue to rise.
The cryptocurrency analyst “No. 7 trader” said, “The skyrocketing market has attracted large funds to enter the market. The entry of large funds has adversely affected the market’s further rise. The market has become dominated by stock funds.
The reason for the surge in LTC transactions, “Seventh Trader” believes that the main reason is that LTC is about to be halved in August this year. The halving of block rewards will lead to an increase in mining costs and a halving of production, which will significantly support the price of Litecoin and its intrinsic value. “LTC is a main line of the first half of the market, halving the market with ‘big pie’ (BTC) to get rid of the $3,000-4,000 area.”