It is evident all cryptocurrencies are trying to recover some of their lost value in the past few months. Doing so will be a monumental challenge, although the past 24 hours have shown some positive changes as well. Even so, specific currencies are going through massive pumps with little trading volume. The Bytecoin price, for example, has risen by over 18%.
Bytecoin Price Pump Materializes out of the Blue
Most people know all too well how altcoins will only thrive when the Bitcoin price shows some positive momentum. Considering how that is happening over the past 24 hours, it is only normal most currencies note positive momentum as well. The Bytecoin price, however, is increasing by leaps and bounds for no apparent reason. Especially when looking at its current trading volume, the trend makes very little sense.
It is not the first time the Bytecoin price gets a major pump. Such trends have materialized at least three times since late April. Every time the Bytecoin price rises, it is usually followed by a major dip. Not entirely unexpected, as the number of use cases for BCN is quite limited, and there is no real reason for this coin to have a market cap of over $1.2bn in its current state. Even so, cryptocurrencies hardly ever make sense, and Bytecoin is no different in this regard.
It is also worth noting how the Bytecoin price is rising thanks to solid increases in the BCN/BTC ratio. More specifically, there has been a 14.36% increase in favor of the altcoin, which is always rather interesting to keep an eye on. Even so, it seems highly unlikely the Bytecoin price will remain at this level for much longer. A dip to $0.005 and lower seems to be rather imminent.
It is the trading volume of Bytecoin which also raises a lot of questions. More specifically, there is $56.6m in 24-hour trading volume, which is anything but impressive at this stage. With all currencies generating a bit more volume compared to last week, Bytecoin remains rather unappealing to the masses. It will be interesting to see if this lack of trading volume will affect the currency moving forward.
Looking over the exchanges ranked by BCN trading volume, it seems Binance is still in the lead, for the time being. Its BTC and ETH pairs are both in the top four, whereas HitBTC and Poloniex claim second and third place with their BTC pairs. HitBTC also completes the top five with its USDT market. Since Bytecoin doesn’t have any fiat currency markets to speak of, it will be interesting to see how this situation evolves in the hours and days to come.
For the time being, it remains to be seen if and when the Bytecoin price will hit its peak before correcting course. As of right now, some of the earlier gains have already been wiped out, and it seems that situation will continue to head in the same direction moving forward. Even so, there’s still a lot of good money to be made when trading BCN, but one has to prepare for a massive correction as well.