In the past twenty four hours, the valuation of the cryptocurrency market lowered by around $9 Bln, as Bitcoin waved below the $6,500 USD mark within the past week, recording a decline of over 2%.
Yesterday i.e on 2nd Oct., it was reported that the low volume of Bitcoin may be a concern for traders and it might negatively impact the short trend of Bitcoin.The volume of Bitcoin remains fairly low at around $4 Bln, which is down to over more than 30 % since this period of time.
It would be a potential kind of thing for a dominant cryptocurrency to interact in an exceedingly short face movement if its volume had rebounded by around fifteen to twenty percent. But, throughout the past twenty four hours, the daily commercialism volume of Bitcoin remained at $4 Bln on CoinMarketCap and $2.77 Bln on CoinChangelly.
The volume of Bitcoin recorded a small gain of around one percent, that had no notable result on the short trend of the crypto market.
The sharp drop in the value of Ripple [XRP] since after Swell 2018 conference conjointly contributed to the downtrend of major cryptocurrencies.
In the crypto market, most digital assets tend to expertise a pump before release or materialization of a serious announcement sort of a product release or a mainnet launch, then fall by an oversized margin succeeding the announcement.
As such, some investors expected the value of Ripple [XRP] to fall when the foremost announcement of Ripple Labs was released, however given the significance of RippleNet integration by Banco Santander and its OnePay FX mobile application, investors expected the momentum of Ripple [XRP] to continue.
The decline within the momentum of Ripple [XRP] and most major cryptocurrencies along with Ethereum [ETH], Bitcoin Cash [BCH] and Stellar [XLM] can doubtless forestall the market from initiating a serious short rally within the next twenty four to forty eight hours.
At this pace the market, it’s vital for cryptocurrencies to demonstrate a gradual increase in volume to initiate a corrective rally within the coming days.
According to the global head of commercialism at Cumberland ‘Bobby Cho’, a Chicago-based cryptocurrency commercialism unit of DRW Holdings LLC, the over-the-counter [OTC] market of Bitcoin has been quite active amongst high-net-worth people and institutions, which might have led Bitcoin to stabilize at an occasional price range.
Adding further Cho added:
“One of the most important criticisms of crypto by institutional investors has been the volatility. Over the last 4 to 6 months, the market has been trading within a very tight spot, and that’s looks to be corresponding with ancient financial institutions changing into more leisurely diving into the house.”
If the demand for BTC continues to extend within the over-the-counter market, it’s possible that within the coming weeks to come, BTC expertise recovery in its momentum and volume.