Oxx Posted December 8, 2017 Share Posted December 8, 2017 Based upon the following chart, trading volumes for Bitcoin plummeted some time in January of this year and haven't recovered. Can anyone explain why?https://data.bitcoinity.org/markets/volume/2y?c=e&t=b This leads me to think that the recent astonishing rises in valuation are simply caused by a lack of liquidity forcing up the price. When (or if) liquidity is restored, I suspect the valuation will come down, perhaps as fast as it went up. Link to comment Share on other sites More sharing options...
cheesyd Posted December 8, 2017 Share Posted December 8, 2017 Because all that volume came from Chinese exchanges which didn't charge trading fees : https://www.coindesk.com/bitcoins-volume-continuing-decline-major-exchanges/. You'll see there's zero volume from China now as bitcoin trading is now banned there. Link to comment Share on other sites More sharing options...
phycokiller Posted December 9, 2017 Share Posted December 9, 2017 yes, China for sure. I dont really see the liquidity problem, but Im not in the US using coinbase I guess Link to comment Share on other sites More sharing options...
jadee Posted December 9, 2017 Share Posted December 9, 2017 China-based exchanges stopped offering margin lending and also stopped 'no-fee' trading. Coin Desk is reporting that the Lightning Network is almost ready, something that could improve liquidity https://www.coindesk.com/lightning-last-test-shows-bitcoin-scaling-solution-almost-ready/ A far more pressing issue; CME Group are releasing bitcoin futures tomorrow. No one is really sure what effect being able to short bitcoin's price will have on its value. Link to comment Share on other sites More sharing options...
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