Coinbase Sees Bitcoin Trading Volume Hit 14-Month High After 70% Rise

Available data shows that U.S.-based cryptocurrency exchange Coinbase has recently seen trading volumes on its platform hit a 14-month high in the month of May, as over 738,000 BTC, worth about $5.9 billion, changed hands through it. The figure is up from 434,000 BTC in April.

According to data from Bitcoinity, the cryptocurrency exchange saw traders make the month of May the sixth-most voluminous month it has seen, reaching levels close to those seen on March of 2018, when last year’s bear market was just starting out.

Bitcoin trading volume on CoinbaseSource: Bitcoinity

CryptoCompare data shows that bitcoin hit its all-time high in December of 2017 when it came close to the $20,000 mark, and that its price fell throughout last year to a $3,200 low in December. Since then, the cryptocurrency has been recovering, and is currently trading at $7,970.

Coinbase hit a record trading volume in December of 2017, when a total of over 1.27 million bitcoin traded hands on the cryptocurrency exchange. Its CEO Brian Armstrong has revealed that in 2017, Coinbase was adding 50,000 users a day.

While the CEO didn’t reveal how many users the exchange was adding a day last year, he noted that while people’s expectations regarding cryptocurrency prices were “all over the map,” real-world adoption was still rising.

Earlier this year, the exchange added support for EOS on Coinbase.com and on its Android and iOS apps, after adding support for various other cryptocurrencies in the last few months. It also launched a new security feature called Universal 2nd factor (U2F) which are “tiny hardware tokens [that] contain cryptographic chips that perform the hard work of ensuring that you’re authenticating to the correct website – and that nobody else can authenticate while pretending to be you.”

Time to Be ‘Cautious or Short' Bitcoin, Says Bollinger Bands Creator

Francisco Memoria

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.