Bitcoin

Bitcoin Transaction Volume Alarmingly Low

There is absolutely no way you haven’t heard of Bitcoin and its rise unless you have been living under the rock for the past several years. But the news isn’t pretty good for Bitcoin right now. You may wonder why, and there are various reasons for it. But what’s most interesting is that the seven-day average for the number of daily bitcoin transactions has reached a two-year low, and it has recently dropped to a minimum of 160.000, the last time that this happened was in March 2016. This huge negative leap in transactions coincides with the weekly volume of bitcoins that are exchanged through peer-to-peer trading volume on Localbitcoins and it has recently dipped below 6000 for the first time since February 2014.

BTC Trading Volume Hits all time low - Chart

There is one data that makes this whole thing more interesting. The last time that the transactions went under 160.000 in February 2016, the Bitcoin worth was varying from $400-450 USD per coin. Is the dark future here again for the Bitcoin? This significant drop, logically, hasn’t gone unnoticed by many analysts around the globe. One of them, the chief investment officer of Newscape Capital Group, Charles Morris has described transaction volume as signifying movements in price direction. He is explaining that Bitcoin had enormous leap and he is kind of “cooling-down” now. On the question is Bitcoin destined to fall down from the huge leap, he has answered that they may just be entering a bear market, finishing his interview.

Another analyst, Kyle Samani of Multicoin Capital has given his impact in the argument that involved a reduction in transaction volume. More concretely, he said that the reduction in transaction volume is reflective of a variety of businesses moving away from Bitcoin as a source of income. Merchants, payment processors, and online gambling are giving on their hopes of Bitcoin, as he stated. His attitudes are that companies around the world don’t want to have anything with a source that is varying with a very big difference in the extreme values.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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