Cryptocurrency Volume Dips to a Two-Month Low
As of June 18, Cryptocurrency volume has dipped to a two-month low. These levels were seen earlier this year in April downtrend.
As of today, the exchange volumes have collectively gone down under US 10 billion dollars. Is volume a workable measure and should it be any reason to worry? The collective exchange volume is down by 80% since the inflow seen in January. This has exceeded an astonishing $68 billion in just 24 hours. Tom Lee, co-founder of Fundstrat Global has called this ridiculous amount of volume an “abnormal” figure. He suggested that January’s volume should not be compared to today’s volume.
Does this make the investors lose interest in the industry? A notable indicator of market’s interest in any asset is judged by the trading volume present with a specific asset or asset class. As per this theory, critics are of the opinion that investors are losing interest in the market a bit too quickly. In spite of these inhibitions, cryptocurrency and Blockchain development is at an all time high. There is a huge amount of work going on in this field and various organizations are seen increasingly interested in this field.
IBM also finally gets serious about cryptocurrency. Last month, it announced to create a cryptocurrency in partnership with carbon-credit start up. With a technology giant like IBM entering into the cryptocurrency market, the news has definitely created an optimistic sentiment. Also government bodies have been more relaxed on the kind of pressures the previous cryptocurrency companies were going through. Despite all this, the market has not seen any rise in exchange volume and some believe that the volume has moved to decentralized over-the-counter (OTC) exchanges. Over-the-counter trading has become a recurring practice making the volume number in billions. This makes the traditional exchanges look very minute.