Bitcoin price swings translates into big volumes

trader works on the floor of the New York Stock Exchange January
6, 2014.

the red-hot digital currency known for its volatile price, was
on a wild ride this weekend.

Bitcoin crashed more than 25% from its all-time high of
$7,721 set Wednesday to a low of $5,617 per coin on Sunday,
according to data from cryptocurrency watcher

Bitcoin cash, on the other hand, propelled to a
record-high of $2,500 early Sunday morning.

Trading volumes on Sunday peaked at over $26 billion,
according to cryptocurrency data site

That’s higher than the 5-day average trading volume for
some US equity exchanges.

Bitcoin, the red-hot digital currency, had a wild weekend and
that appears to have translated into record-breaking trading
volumes across the cryptocurrency market.

Bitcoin crashed more than 25% from Wednesday’s all-time high to a
low of $5,617 Sunday. Bitcoin cash, the rival clone of Bitcoin,
witnessed an impressive rally that propelled the coin to a
record-high of $2,500 early Sunday morning.

The 24-hour trading volumes for cryptocurrencies reached a record
above $26 billion on Sunday, according to data site, the
highest ever.

To put that in perspective, that is higher than the 5-day average
trading volumes for two US stock exchanges. Both IEX, the upstart
exchange based in New York, and the Chicago Stock Exchange
averaged less than $10 billion in trading each day for the last
five days, according to data by Cboe Global

IEX saw $7.8 billion worth of shares exchange on its venue,
whereas CHX witness $3.1 billion in trading volumes.

New York Stock Exchange and Nasdaq, on the other hand, saw more
than $50 billion worth of shares exchange daily on average over
the last 5 trading days.

Still, the record cryptocurrency volumes over the weekend
indicate the growing interest in the red-hot market, which until
very recently has rarely witnessed daily trading volumes over $10

In an October 16 note to clients, Bank of America Merrill Lynch
said cryptocurrencies present
a $1.6 billion opportunity for Wall Street. The figure was
based on the assumption that cryptocurrency volumes end up
at about 10% of current fiat currency trading volumes.
Here’s the bank:

“The FX market is highly liquid. For example, spot FX volumes
were $1.65tr as of the most recent BIT Triennial survey in April
2016. If these volumes were to materialize, with the same
relationship between spot market and futures, and the same
revenue per contract, the revenue pool would be about $1.6bn.”

Already, exchange giants Cboe and CME are looking to capitalize
on the nascent space. They have both announced they are preparing
to launch
Bitcoin futures products in the near term.

Higher volumes, according to Bank of America, could help
legitimize cryptocurrencies across Wall Street, which still
remains widely skeptical of their credibility.


Many top Wall Streeters have derided Bitcoin, for instance, as a
vehicle used mainly by criminals.

In an interview with Bloomberg News, Larry Fink, the head of
the largest investor in the world, BlackRock said the explosive
growth of Bitcoin points to “how much money laundering is being
done in the world.”

And JPMorgan CEO Jamie Dimon once said Bitcoin was only useful
for murderers and drug dealers.

Article Source…

Leave your comment below...

Be the First to Comment!

Notify of