The indicators of the volume of exchange trading and the number of active addresses in the blockchain of the first cryptocurrency exceeded the peak levels of 2017. Analysts surveyed by CoinDesk see this as preconditions for the continuation of the bull market.
According to CryptoCompare, in early 2021, daily trading volumes on the eight largest bitcoin exchanges surpassed the $ 11 billion mark, surpassing the peak of three years ago.
Data: CoinDesk, CryptoCompare.
“The increase in trading volumes on bitcoin exchanges is a key sign of the growth in scale and maturity of the cryptocurrency market. Increased trading activity increases liquidity and improves its efficiency, ”said Bendik Norheim Schei, head of research at Arcane Research.
The expert is sure that the surge in volumes on January 11, when the price of bitcoin temporarily dropped below $ 31,000, was the result of sales by newcomers.
“Some of the liquidations are definitely new and inexperienced investors who enter the market for the first time and panic when the price starts to fall. Such corrections are an integral part of a healthy bull market, ”the specialist explained.
According to Glassnode, on January 8, the all-time high was also rewritten in the number of active bitcoin addresses. The seven-day moving average of the indicator at a certain stage exceeded the 1.3 million mark.
“This surge indicates an even higher level of Bitcoin adoption. This suggests that the number of market participants may be higher than ever before, ”the researchers noted.
Earlier, investor Bill Miller expressed the opinion that the first cryptocurrency has not exhausted its growth potential due to unmet demand from institutional and retail investors.