The price of Bitcoin is back above the all-important level of $7,000 as it continues its recovery from the mid-march drop that sent the cryptocurrency market reeling alongside traditional stocks due to the impact of the Covid-19 outbreak.
Bitcoin has been hovering around $6,200 and $6,800 after settling down from its near 90 percent recovery following its dramatic drop. The move towards $7,000 and above is now a key one as it represents a floor which if the coin can stay above indicates more bullish performances on the horizon.
This recovery also comes off the back of new all-time volume highs in both the spot and derivatives markets. This high level of trading, or volume, is usually indicative of bullish patterns, but it must also be remembered that trading volume can be heightened in times of a market collapse as the sell off spikes the trading volume.
In general, however, there are a lot of positives to take at the moment as the industry also fast approaches the Bitcoin mining reward halving which has been dampened somewhat in the wake of the market collapse, but still remains an important factor in the evolution of the coin.
Big trading volume on a down day
Unsurprisingly, the major market collapse that came at a time where the global markets were under huge pressure, sparked a gigantic wave in trading. In CryptoCompare’s monthly report, it stated that March 13 produced the single greatest volume in the history of cryptocurrencies.In total, all exchanges and markets produced $75.9 billion in trade activity over 24 hours.
$54.3 billion, or 71.5 percent of trades, came from ‘Lower Tier’ exchanges, while ‘Top Tier’ exchanges generated $21.6 billion in volume.
It was seen that Binance and OKEx represented the largest share of volume throughout the crash but the majority of trades throughout the first hour of the crash came from Bitfinex, followed by Coinbase, OKEx, and Bitstamp.
Derivatives also in on the action
Cryptocurrency derivatives, which have grown dramatically in recent times, were also part of the trading explosion. In fact, these products, which welcomed in the majority of institutional traders, traded a new high of $600 billion in monthly trade during March — a monthly gain of 5%.
The so-called ‘big-four’ of crypto derivatives markets — OKEx, BitMEX, Huobi, and Binance — combined for a total of $514 billion or 86 percent of the entire market.
The report notes significant growth from newer entrants derivatives platforms too, with Binance and FTX growing from 14% of total trade in January to 22% last month.