BTC volume exceeded the maximum in 9 months: is the market ready for further growth?

In the last 24 hours, the valuation of the crypto market increased by $8 billion as the Bitcoin price neared the crucial $4,000 resistance level. Major crypto assets in the likes of EOS, Ethereum, and Bitcoin Cash recorded gains in the range of 10 to 30 percent. Most cryptocurrencies have started to see record high volumes across leading cryptocurrency exchanges, demonstrating an increase in demand for digital assets.

Prior to the rapid price movement of Bitcoin from the mid-$3,000 range to $3,995, one cryptocurrency trader said that the volume of the dominant cryptocurrency is at a 9-month high. “Volume precedes price. We’re on our way to the highest crypto volume day since the beginning of the bear market. It’s already the highest volume day since May 2018. Oh, and BTC transactions are almost back to ATH as well,” the trader said.

Throughout the past six months, the core concern of analysts regarding the mid-term trend of crypto assets has been the lack of volume and trading activity in the digital asset market. Positive technical indicators supported by fundamental factors such as the growing usage of the Bitcoin blockchain network and rising transaction volume have improved the sentiment of investors in the cryptocurrency market. Ethereum, which recorded a 10 percent increase in value on the day following a strong day on February 18, also reached record high volumes across major exchanges such as BitMEX. Although the price movements of both Bitcoin and Ethereum have fueled the momentum of the two assets, Alex Krüger, an economist and a cryptocurrency analyst, said that it is too early to expect FOMO in the market.

Bitcoin Hits Highest Volume in 9 Months: Is Crypto Ready to Take Off After Massive Gains?, CCN, Feb 19