- Bitcoin futures daily perpetual volume reached the lowest at $103,888,674.10in the past three months.
- The previous drop in its volume was on June 14th, 2020 at $104,398,282.14.
- Volatility is considered to be the main reason that hinders the widespread adoption of cryptocurrencies.
Glassnode alerts, an on-chain market intelligence tweeted that Bitcoin futures daily perpetual volume reached the lowest of $103,888,674.10in the past three months.
? #Bitcoin $BTC Futures Daily Perpetual Volume (1d MA) just reached a 3-month low of $103,888,674.10 on #Ftx— glassnode alerts (@glassnodealerts) June 22, 2020
Previous 3-month low of $104,398,282.14 was observed on 14 June 2020
View metric:https://t.co/lKTlcgD0ot pic.twitter.com/ptJ8NluyrK
The Black Thursday Recession
Ever since the Black Thursday of March, when the entire cryptocurrency market had crashed and blockchain giants like Bitcoin (BTC), Ethereum, Ripple had to suffer huge capital loss in the millions of US Dollars. They were getting on track after suffering this huge blow. Bitcoin and Ethereum rapidly restored their capital. Bitcoin’s highest point of its market capitalization was $188.76 billion, which in this year’s February 14th. In the first week of June, the capital of Bitcoin recovered to around $187.58 billion, just a little short of its highest point.
However, the Bitcoin’s future daily perpetual volume (1dMA) had suddenly dropped to $103,888,674.10. The previous drop in its volume was on June 14th, 2020 at $104,398,282.14. Price volatility has always been a problem for blockchain giants like Bitcoin and Ethereum. Volatility is considered to be the main reason that hinders the widespread adoption of cryptocurrencies.
Bitcoin Price Volatility To Act As Catalyst For Multi-month Correction
On June 15, the Bitcoin price came down to as low as $8892. Some analysts said that the sudden leap in Bitcoin’s value may provide an upper hand in the multi-month correction. Since, 2019’s October, Bitcoin has been trying its best to cross the $10000 mark which has acted as its resistance for a long period. However, we have seen that every time Bitcoin crossed the $10000 mark it had met with great repercussions followed by a great downward trend.
The bitcoin range has always been in the vicinity of $9300 to $9900. A prolonged period of price volatility can even have adverse effects. For instance, the breakdown becomes more difficult to overcome.
Geopolitical Factors Affect The Bitcoin Market Value
Bitcoin is often considered an independent digital asset, there are certain geopolitical factors that decided the Bitcoin market value and its demand. For instance, the most successful stablecoin in the market Tether contributes to a large amount of daily Bitcoin volume. Mostly Chinese investors use Tether to buy Bitcoin, due to many restrictions. According to data, in 2019 the majority of Tether volume was from China. Hence, the ongoing global pandemic and economic conflicts can increase the uncertainty in Bitcoin’s market to a great extent.