Trading volumes on major cryptocurrency exchanges hit a daily record on Monday of more than $ 68 billion (around Rs. 4,97,200 crores), research showed, highlighting the trading frenzy that has accompanied the cost of bitcoin to a high .
Bitcoin hit a record high of $ 34,800 (around Rs. 25.4 lakhs) on Sunday, building on a 2020 rally that saw more than a quadruple as major U.S. investors jumped into the market. It then fell abruptly on Monday amid volatility in futures markets which was fairly average, before recovering from losses.
The second largest cryptocurrency, ethereum, which tends to trade in conjunction with Bitcoin, also hit Monday at its highest level since January 2018, touching $ 1,170 (around Rs. 85,600).
Total daily trading volumes in cryptocurrencies hit $ 68.3 billion (around Rs. 4,99,600 crores), data from UK research firm CryptoCompare showed on Tuesday. Daily volumes averaged $ 13.1 billion (around Rs. 95,800 crores) in 2020, the data showed.
Bitcoin’s record high came less than three weeks after surpassing $ 20,000 (around Rs. 14.6 lakhs) for the first time on December 16th.
Bitcoin rally rally has been thought to be a potential hedge against the risk of inflation as governments and central banks turn on the stimulus taps to combat the COVID-19 pandemic. Its potential for quick gains also attracted demand.
Crypto trading volumes consistently go through periods of very high prices, highlighting the key place for speculative traders in digital currency trading.
© Thomson Reuters 2020
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