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Global Cryptocurrency Volume Down 75% from January High

As global cryptocurrency markets continue to slide from elusive January highs, it’s becoming increasingly evident that the next “boom” may be further away than many had anticipated. Bitcoin’s price is down nearly 50% from its local January 7 high of US$17,000, and other altcoins have seen average losses of about 60% in that same time frame.

While these numbers are not encouraging indicators, what may be even more significant is the change in trading volume between then and now. Days before the January 7 high, the global trading volume of all cryptocurrencies reached a record US$71.6 billion. In the past few days, 24-hour volume has fluctuated around $15 billion. This drop-off represents an almost 80% reduction in trading activity.

This massive loss of volume suggests two realities. The first is that active traders, who may have accrued massive profits during the bull market, were shaken out due to significant losses and/or newfound patience. It’s no secret that inexperienced or otherwise unsuccessful day traders can take the biggest hits in turbulent markets, and the volume loss indicates that some of these frequent contributors saw crippling blows to their positions. This, of course, is natural, and while it’s not a generally positive influence on markets, it’s nothing to get too concerned with.

The second, much more serious reality is that general interest and conversation about cryptocurrency is down. All the new investors who found out about this great new technology over the holidays are no longer looking to purchase Bitcoin and Ethereum. It’s likely that they, too, have largely been shaken out with the extended downtrend. Google Trends supports this conclusion. Bitcoin saw its largest interest at its all-time high value of US$20,000 in December, and has since seen a drop in search interest of 80%. The term “cryptocurrency” has fared slightly better, but peak interest at the time of the global January 7 high was still 4 times what it is now, which equates to a similarly massive drop in interest of 75%.

General search interest has fallen to the same level as was seen in late October, when the global cryptocurrency market cap was less than half of what it is now. If the relationship between volume and price movements holds true – that is, if volume falls at a rate greater than value does, this does not necessarily suggest coins will similarly drop back to pre-November prices. However, it still suggests that unless interest sees a trend reversal, the bear market could potentially continue for quite some time.

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Police Arrest Four Ukrainians for Running Fake Cryptocurrency Exchanges

Law enforcement in Ukraine has arrested four young men who were running at least six fake cryptocurrency exchanges. The cryptocurrency sphere is an exciting space, and many people are eager to begin buying and selling virtual currencies. However, such an influx of money and inexperienced newcomers also bring out the criminal element, seeking to gain funds at the expense of those new to the space. Scams abound, but police in Ukraine have done their part by arresting some individuals who ran a number of fake cryptocurrency exchanges. Using Programming Skills to Set up Scams In the city of Dnipro, Ukraine, police announced that they had arrested four men between the ages of 20 and 26. The quartet had set up a number of fake cryptocurrency exchanges. Police know of six fake exchanges that they operated, but there is a definite possibility that there may be more. The six fake exchanges include: moneycraft.info, wowex.online, swapex.net, myexchanger.lv, iconvex.net, and likechange.biz. Police say that the criminals had “special knowledge and skills in the field of programming” and “have created their own CMS-system for managing the content of exchange sites.” Unsure of Amount Stolen Police are asking those who were scammed by the fake cryptocurrency exchanges to come forward and file complaints. As of now, law enforcement does not know exactly how much the four men were able to steal from their victims. Police may be able to glean such information from the equipment that was seized during the arrests. It was reported that flash drives, computers, smartphones, and other equipment were confiscated when police raided the homes of the four men. The reality is that crime and scams are rampant in the cryptocurrency sphere. One should always do due diligence before spending any money. The world of virtual currencies is still akin to that of the Wild West, which means that danger is just as close as excitement and opportunity. Have you ever been scammed by a fake exchange, wallet, or ICO? Let us know in the comments below. Images courtesy of Shutterstock. The post Police Arrest Four Ukrainians for Running Fake Cryptocurrency Exchanges appeared first on Bitcoin Network, News, Charts, Guides & Analysis.

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