The latest statistics released by the British research company CryptoCompare show that the trading volume of major cryptocurrency exchanges hit a single-day record of as high as 68.3 billion U.S. dollars on Monday, thanks to the recent surge in bitcoin prices.
The price of Bitcoin hit a record high of $34,800 last Sunday, continuing the 2020 gains. At that time, as more American investors poured into the market, the price of Bitcoin more than quadrupled. On Monday, amidst the volatility in the highly leveraged futures market, the price of Bitcoin fell sharply, but then rebounded.
The price of Bitcoin broke through USD 20,000 for the first time on December 16 last year, setting a record high. The price of Ethereum, the second largest cryptocurrency, also hit its highest level since January 2018, reaching $1,170 on Monday. Ether is often traded synchronously with Bitcoin.
CryptoCompare’s data on Tuesday showed that the total daily trading volume of cryptocurrencies on Monday reached 68.3 billion U.S. dollars, and the average daily trading volume in 2020 was 13.1 billion U.S. dollars.
The most important factor driving the rebound in bitcoin prices is that many analysts believe that as governments and central banks take stimulus measures to combat the new crown pneumonia epidemic, bitcoin can play a role in hedging inflation risks. In addition, its potential for rapid growth has also attracted increased demand.
Cryptocurrency trading volume often soars during periods of extreme price fluctuations, which highlights the central role of speculative traders in digital currency transactions.