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The bitcoin exchange rate does not meet the exchange’s trading volume

One of the authors of the popular publication, The Block Larry Cermak conducted a comparative analysis of trade volume popular stock exchanges of digital assets with the cost of most capitalized cryptocurrency bitcoin. It turned out that at the moment the rate of BTC is not up to the expected level.

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In their study, the expert drew attention to the fact that the growth of trade volumes can be considered as a late indicator of rising prices. The principle of the theory is based on the fact that with the beginning of positive movement in the market of digital assets to trade connects greater numbers of people. As a result, the exchanges begin to grow trading volumes. Based on this logic, they were presented with a picture of the behavior of bitcoin prices.

As becomes clear from the graph, in may the trading volumes of exchanges of digital assets was significantly less than expected. In addition, it was found that the rate of volume over the past two months fell by 50%. In connection with detected inconsistencies, the expert suggested the following options for their explanations:

  • in September, cryptologist may face significant price correction in the market of digital assets;

  • the trading volume catch up in September.

Another possible explanation of the lack of trading volume specialist highlighted the likely conduction of a large number of OTC transactions and the popularity of derivatives.

We will remind, yesterday it became clear that the two companies took the decision to launch a bitcoin ETF without waiting for approval from the SEC.

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