2020 Will Be The Heyday Of Bitcoin: BTC and ETH Trading Is Gaining Momentum
Against the background of the ongoing destabilization of the global financial market, Bitcoin headed for strengthening its position. This is convincingly indicated by the indicators: on Sunday, the trading volume of Bitcoin amounted to $ 40 billion, now these indicators have increased by 17% to $47 billion. We also see changes in the Bitcoin exchange rate: the BTC price increased by 5% per day and amounts to $6,274.
The leaders of the crypto community focus on the fact that Bitcoin is becoming more independent. The digital currency is moving away from correlation with the traditional US stock market, where the Dow Jones index continues to decline. This behavior of Bitcoin causes an increase in optimistic sentiments within the crypto community, which has been held captive by negative forecasts for the past few weeks. Catherine Coley, CEO of Binance.US commented on this situation:
“We are seeing an increase in Bitcoin trading volumes. This is an unprecedented case where a digital currency runs counter to a recession in the global market. Investors are now interested in trading stable coins, which potentially have a high level of hedging. This is especially important in the face of increasing volatility and unpredictability of further asset development. ”
Now we are witnessing a situation where the government and central banking institutions are trying to stabilize traditional markets. To stimulate the financial market, they have already taken several unprecedented measures, for example, the allocation of funds from federal reserves, the purchase of assets by central banks and others. At the same time, cryptocurrency is being restored on its own, without external support.
We can also observe how the low cost of cryptocurrency provokes the activation of trade. In particular, this happens with Ether, the price of which is now about $130. Brain Norton, COO of MEW (MyEtherWallet) noted the following:
“Today, people are interested in acquiring ETH. We have never before seen such a boom around digital currency, even during its record decline in 2018. Now almost all transactions go one way, namely, buying cheap ETH. ”
Mike Novogratz, CEO of Galaxy Digital, a cryptocurrency bank, is closely monitoring changes in the cryptocurrency market. He notes that separating digital currency from correlation with traditional markets is a positive thing, but do not forget the difficult conditions the whole world is facing now.
“A few more months, the BTC will fluctuate. Despite this, 2020 will be the year of Bitcoin.”
Last week, the news about the massive sale of bitcoins by investors was actively promoted in the information field. But many crypto experts deny this process. In particular, this is stated by the statement of Diogo Monica, president, and co-founder of the custodian of digital assets Anchorage:
“Despite the dissemination of information about the large sale of Bitcoin, this does not happen in our company. Digital assets are now proving a high level of hedging compared to traditional assets. But the issue of enhancing transaction security in the cryptocurrency market continues to remain unresolved. ”
The expert also noted:
“In current circumstances, Bitcoin has shown that it can survive without outside help. When the traditional market seeks a lifeline, Bitcoin continues to float. ”