Interesting things are happening in the world of Bitcoin and cryptocurrency. Right now, it seems the Bitcoin price is (finally!) experiencing its expected correction. The Bitcoin price sits well below the US$4,000 mark right now, after nearly a full week of pushing toward US$4,500. All good things must come to an end, unfortunately, but there is no reason to think the price will remain this low for a prolonged period of time. The BTC trading volume is setting new records right now, which shouldn’t be overlooked either.
A Brief Bitcoin Price Dip
It was to be expected that the Bitcoin price would see a major dip at one point or another. After a few weeks of bullish momentum and surging past US$4,000, there had to be some correction. It is impossible to maintain such a strong price momentum without prices taking a beating at some point along the way. Bitcoin traders would certainly like to see things play out differently, but one has to take the good with the bad whenever the market turns sour.
At the time of writing, the Bitcoin price has only dropped by 3.68% in the past 24 hours. That is not as much as some expected, yet it still pushed the Bitcoin price below US$4,000. Then again, with the price holding on at the US$3,900 mark for the time being, there is no reason to be overly concerned just yet. If the price had crashed by 25% or more, people would have reason to panic. For now, though, this is nothing but a flesh wound, so to speak.
One thing keeping the Bitcoin price afloat right now is its humongous trading volume. Over the past few days, we have seen an average of US$2 billion in 24-hour trading volume, which is already quite substantial. Right now, the volume sits at around US$3.6 billion, a sudden increase of nearly 100%. This kind of growth is rather unprecedented even for the world’s leading cryptocurrency. It also shows good things will come to Bitcoin given some time, which could have a positive impact on the price as a whole. Only time will tell if that is the case.
It is worth noting that the majority of Bitcoin trading volume hasn’t been coming from Bithumb for a change. Just yesterday, we noted that Japan’s bitFlyer exchange had suddenly started generating substantial trading volume. The past 24 hours have yielded much of the same, resulting in around US$785.73 million in BTC trading volume. Considering that is nearly four times as much as Bitfinex saw in second place, one could say Japan is going bonkers over Bitcoin right now. Then again, Japan is quite keen on Bitcoin, to say the least.
It is also good to see most of the Bitcoin trading volume come from fiat currency markets once again. Although the ETH/BTC market on Poloniex is also contributing a fair amount of volume, there are seven fiat currency trading pairs in the top 10. Interestingly enough, all of the Chinese exchanges have generated virtually the same volume over the past 24 hours, yet they still have the Bitcoin price listed above US$4,000 right now. It will be interesting to see how this situation plays out in the coming days and weeks.
People who recently invested in Bitcoin have nothing to worry about by any means. The price will rebound eventually, although it might take a few days or weeks, depending on the whim of the markets. It seems there’s plenty of volume and momentum to successfully push the Bitcoin price back over US$4,000 before the weekend. Then again, cryptocurrency markets are incredibly difficult to predict, as it doesn’t take a whole lot of money to make things move in a certain direction. The coming days will be quite interesting as far as Bitcoin is concerned; that much is evident.