Bitcoin volume hit its highest level for nearly a month this week as positive regulatory news increased market confidence in the digital asset.
On Tuesday, the total value of bitcoin transactions swung up to $13,999,800,000, a 34% increase from $9,285,290,000 the day before. In the morning, the coin had been trading at lows of $6,079.88 but shot up over $1,700 in value by the close. The uptick in Bitcoin volume combined with the increasing price strongly suggests that there was a sudden surge of investment into Bitcoin, a sign that investor confidence had returned.
The next biggest trading volume for Bitcoin was on the 18th of January at $15,020,400,000 when a major sell-off began as cryptocurrencies across the board tanked in value.
This sudden increase in the level of Bitcoin being bought coincided with the news that two of the US’ top financial regulators had given unexpectedly bullish testimony to the US banking committee. CTFC Chairman Christopher Giancarlo said the onus was on the government to respect cryptocurrencies as an emerging market which deserved to be regulated effectively. It was also the day when Singapore authorities stated there was a very limited case for an outright ban on cryptocurrencies or exchanges and ruled out any plans to ban it in the near future.
Bitcoin is notorious for its volatility, but Tuesday saw a noticeable reversal of the downward trend which has led the value of bitcoin to sink by over 60% from highs of just under 20,000 in December; since Wednesday morning GMT, Bitcoin’s value has been consistently over the $8,000 mark. Although it may still be too early to tell if this reflects a long-term steadying in value or merely a momentary period of calm.
In comparison, when China announced on Monday that it would ban investment into foreign cryptocurrency platforms and quickly blocked web access to cryptocurrency and ICO websites, the coin closed at $6,955.27, a 16% decrease from its opening of $8,270.54.
As of Friday 11:20 GMT, Bitcoin is valued at $8,224.81 and has a trading volume of $8,348,790,000.
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