There are often a lot of questions as to how much demand there really is for bitcoin. A new report by Arcane Research indicates everything is going swell.
Analyzing the trading of different cryptocurrencies is always a big undertaking.
Early Bitcoin Trading Volume Isn’t too Relevant
Not all of the exchanges and trading platforms share their data publicly.
Additionally, one has to detract wash trading and manipulation from the equation.
The numbers provided by Arcane Research shows things are moving in the right direction.
The company confirms that the increasing trading volume signals a prominent trend.
It is still early in the year to draw any real conclusions.
Doubling the bitcoin trading volume in the first week of 2020 is a good start.
However, comparing it to the final week of 2019 – in the middle of the holiday season – is a bit moot.
Despite the improving volume, the bitcoin price hasn’t budged all that much.
It successfully remains above or near $8,000 but that is about it.
Until any major price changes occur, the trading volume increase isn’t all that relevant.
All of this information needs to be put in its proper perspective.
A weekly trading volume increase doesn’t make for a new bull run by any stretch of the imagination.