Bitcoin Price Notches Increase as Cryptocurrency Market Jumps $20 Billion
Over the past 24 hours, the cryptocurrency market has gained $20 billion, as important cryptocurrencies bitcoin and Ethereum recorded strong gains. Bitcoin increased by over 6 per cent, while Ethereum, EOS, Litecoin, Ripple, and Bitcoin Cash rose by approximately 4 percent.
Changpeng Zhao, the founder and CEO at Binance, the world's largest cryptocurrency as demonstrated by cryptocurrency market data provider LiveCoinWatch below, noted that volumes across most major cryptocurrency exchanges are back, signaling an increase in demand for cryptocurrencies.
Zhao said, «good to see volumes are returning across the board,» as the cryptocurrency market started to demonstrate a massive increase in daily trading volume, which has been comparatively low ever since the price of bitcoin dropped to the $7,000 area earlier this month.
Storm, an Ethereum-based blockchain platform which incentivizes users for carrying out micro jobs, was the best performing cryptocurrency of the day, as it increased by approximately 170 percent. Currently, Storm remains as the next most liquid cryptocurrency in the global market behind bitcoin, with a $2.3 billion trading volume.
The huge majority of Storm's daily trading volume is generated by Upbit, South Korea's second biggest and the world's fifth most important cryptocurrency market, which recently recorded Storm on its stage. The South Korean cryptocurrency marketplace has been leading the recent rally of Storm.
ICON, better called South Korea's Ethereum, also experienced a massive surge in value after Bithumb, the nation's biggest cryptocurrency exchange, listed it last week.
For several months, during January and February, volumes on South Korean cryptocurrency exchanges remained low. Throughout the correction, many investors in South Korea, notably speculators and weak hands, were damaged by the sharp decline in most major cryptocurrencies.
Consequently, analysts predicted that the cryptocurrency market in South Korea to take at least three to four months before it can recover. But, positive media coverage of public figures like Peter Thiel, Twitter CEO Jack Dorsey, and billionaire investor Alan Howard led the local market to recovery quickly.
Over the last few days, daily volumes of bitcoin, Ethereum, and other cryptocurrencies remained quite low, and the price of bitcoin dropped from $9,000 to $8,500 as a result. If the current daily trading volume of the cryptocurrency market can be sustained over the next few days, the market will be able to rebound from last week's losses.
Aaron Brown, an expert in financial market research, said that the requirement for bitcoin from the public market has not increased nor decreased, as price movements have stayed smooth.
«Both using historical actual price movements or option implied volatilities, volatility seems to be about equal across exercise rates. This implies Bitcoin price movements are smooth, like a normal distribution, rather than characterized by fat tails, jumps and changes in volatility such as most assets. Bitcoin volatility is quite high, but the volatility captures all of the risk,» Aaron Brown wrote.