Bitcoin (BTC) Surges Nearly 6% in 12 Hours to Move Past $6,700

Avi Rosten

The price of bitcoin (BTC) has surged nearly 6% in under 12 hours - climbing to over $6,700 - as cryptocurrency markets across the board have shown signs of recovery.

minute_CryptoCompare_Index_BTC_USD_289_51537521048448.pngSource: CryptoCompare

Unclear What’s Behind Surge

The biggest BTC news for the last few weeks came last night as the US SEC announced it was once again postponing its decision on the highly-anticipated VanEck-SolidX Bitcoin ETF until December 29th.

This news however is likely unrelated to the recent surge. The last time the SEC made a similar postponement announcement on August 8th – bitcoin dropped over 7% in price - although it is possible that investors expecting an outright “no” were somewhat encouraged.

Changpeng Zhao: Stablecoins and $6k Support Level Are Positive Signs

While such price movements are most probably attributable to short-term trading activity, taking a broader view on the state of the market yesterday – Binance CEO Chanpeng Zhao offered some reflections on the year as a whole while talking to CryptoGlobe at Consensus Singapore.

We asked him about the proliferation of stablecoins - such as Gemini’s recently launched GUSD – a development Zhao believes is very positive:

Stablecoins are huge, I think people don't understand the impact of a regulated stablecoin... If people understood what the impacts are bitcoin price would be going up now because of all the stablecoins. They are a very good channel for fiat money to come in and spread around the crypto space. I think it’s a very, very positive thing

Moreover, Zhao was keen to look at the general support level for BTC this year:

If you look at the chart, we have seen a very strong support level at $6,000 in 2018, whereas in 2014 it was $200. I never trade myself, I buy and hold. Any minute the bull market will return, historically October to December are the good months... But I don't make predictions we just react to markets

 

day_CryptoCompare_Index_BTC_USD_366_11537524721284.pngSource: CryptoCompare

Crypto Market Crash Led to Highest Daily Volumes Ever, Cryptocompare Finds

Last month’s cryptocurrency market crash on March 12- 13 saw daily trading volumes hit a new all-time high as $75.9 billion were traded across cryptoasset exchanges in a single day.

According to CryptoCompare’s March 2020 Exchange Review, most of the trading volume came from lower-tier cryptocurrency exchanges, as these traded a total of $54.3 billion on March 13. Top-tier crypto exchanges, on the other hand, traded a total of $21.6 billion that day, equivalent to 28.5% of the total trading volume.

The report further revealed spot volumes surged in the first quarter of this year, increasing month-over-month since December 2019.

market volumes in MarchSource: CryptoCompare

The trading volume of the top-tier exchanges, it’s worth noting, didn’t hit a new all-time high, but came close to the record-breaking volumes they saw in July 2019 and December 2017, when the price of bitcoin was at an all-time high near $20,000.

As CryptoGlobe reported, CryptoCompare’s January 2020 Exchange Review showed that top-tier cryptocurrency exchanges saw their trading volume grow by 61.2% at the beginning of the year, while the trading volume of lower-tier exchanges then grew by 46.4%. At the time, top-tier exchanges were gaining market share and climbed to one-third of the global trading volume.

While exchanges using the trans-fee mining model have in the past recorded sky-high trading volumes, these represented less than 20% of the volume last month. Exchanges using the traditional taker fees represented 80.4% of the total trading volume.

Despite hitting a new record in daily trading volumes, exchanges saw their total traded volume drop in March. Fee-charging exchanges’ volumes dropped 2% to a total of $924 billion, while TFM exchanges’ volumes dropped 14% to $222 billion.

Top Exchanges During Crypto Market Crash

Binance was the largest top-tier cryptocurrency exchange by volume in March, trading a total of $63.6 billion, up 19.2% compared to February. It was followed by OKEx, which traded $47.7 billion, down 8.2%.

market crash volumes.jpgSource: CryptoCompare

When Bitcoin’s price started plummeting on March 12, Bitfinex represented the majority of top-tier exchanges’ trading volumes across its BTC/USDT and BTC/USDT pairs. It was followed by Coinbase, OKEx, and Bitstamp.

Within the first hour of the crash, CryptoCompare’s report adds, Bitfinex generated the most volume.

 Photo by David McBee from Pexels.