BITCOIN TRADE VOLUMES SET ALL RECORDS

Updated: 12/03/2015 14:18
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bitcoin trade volumes set records
The volume of Bitcoin stock trades set absolute records for the period of last 2 years trading the cryptocurrency on November 26, as the cryptocurrency
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The volume of Bitcoin stock trades set absolute records for the period of last 2 years trading the cryptocurrency on November 26, as the cryptocurrency

The volume of Bitcoin stock trades set absolute records for the period of last 2 years trading the cryptocurrency. The most active day was on November 26, as the cryptocurrency turnover reached $2.86 mln. in total on all the platforms, accordign to the information provided by Bitcoinity.

The trade volums show record peaks since the previous rally, more than four weeks ago on October 30, when the cryptocurrency turnover reached $2.49 mln.

Bitcoin trade volumes as of November 30 2015

As the volumes increased the Bitcoin rate increases as well from $320 to $360. During the previous rally similar picture could be observed as well.

Is Bitcoin set for main-stream?

Even taking into account the growth was close to Black Friday, which was one day before, lots of specialists could connect these two events, it needs to be taken into account there is no direct connection with the retailers' commercial activity.

Talking to Coindesk, the portfolio manager of Altana digital currency fund, Alistair Milne, pointed that "...only a small percentage of exchange volume will be due to genuine bitcoin use or adoption".

The main engine of increasing the trading volumes is the fact far more and more stock exchanges start to offer the leveraged trading option, which, consequently leads to increasing rate volatility. Brokers using levers in as a dominated tool raise the rate motion amplitude in both directions. As for the futures trades they affect the spot rate directly.

BTCC stock exchange launched Pro direction last money with up to 20x levers available, which couldn't stop from facing the trading activity splashes, as it's been confirmed by the stock exchange representatives.

Leveraged trading.

The difference between the real world of using cryptocurrencies and their rates is pictured well with the fact, the number of Bitcoin deals has been increasing constantly during the previous year. Durign last 12 months the number of transactions nearly doubled, provided however, the rate stays stable, around $380 as a year ago. Here comes the question: "Why doesn't the rate change, while the network activity doubles?"

See the chart showing latest bitcoin circulation progress

The answer lies in the leveraged trading principles. The thing is that many platforms launched trading robots to increase the trading volumes visually. This makes an image of a highly liquid market, which potentially affects the involving on new participants. The representatives of WhaleClub trading room claim trading bots become more and more apparent and their number is growing.

According to the information from Bitcoinity 78% of all trading volumes during last 30 days were made on the Chinese stock exchanges OKCoin and Huobi. At that, Bobby Lee's BTCC  had about 5% of trading activity in the same period. Lee offers reasons for the increase in activity rooted in fundamental demand for bitcoin beyond speculators and the by-products of leveraged trading: "China overall has also seen a noticeable increase in volumes due to a combination of increased awareness of bitcoin as a useful digital asset, and concerns in China about the bearish stock markets here, the increasing strength of the US dollar vis-à-vis the yuan and global sovereign debt concerns."


About the author

Brett Sherpan has been working for seven years writing and editing for online and print media. He has held various editing and copywriting positions and can quickly and competently write copy for sales, marketing and editorial content. Brett is a consistently dependable team player, who thrives in a high-pressure environment, enjoying the challenges of meeting deadlines and am comfortable researching, writing and editing on a wide range of topics
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