Total cryptocurrency trading volume hit an all-time high (ATH) of $176 billion USD on Wednesday as the market recorded its highest weekly trading volumes. According to the reported data on Coinmarketcap, the total volume traded over the past week hit a record cumulative figure of over $800 billion USD, signaling a reawakening of the bulls and a possible breach of $300 billion in the coming weeks.
Over $800 billion USD traded in the past 7 days
It all started with Bitcoin (BTC) crossing the $8,000 psychological threshold at the start of the year as the market prepares for the block reward halving in May. Fast forward to Wednesday this week shows the cryptocurrency market witnessed an obscure growth in daily trading volumes from $77 billion USD to $163.65 billion USD, setting the highest ever daily trading volume recorded.
The cumulative trading volumes of the cryptocurrencies over the past week soared to an all-time high of $801 billion USD, representing a 41% soar from the past week’s volumes.
The rise in Bitcoin ignited a bullish momentum on the market setting altcoins in a mega bull run that saw some top coins gain over 100% in the past week. Bitcoin SV’s spiked to an all-time high price of $435 USD Ethereum Classic (ETC) soared over 100% in a week to $11 USD from sub-$6 USD levels and Tron (TRX) broke into the top ten for the first time in 2020. These signals a possible bullish momentum is on the way.
Moreover, Bitcoin (BTC) and Tether (USDT) remained as the largest contributors to trading volumes through the week with over 60% of the trades completed.
Could this be a signal of an upcoming bull run in the cryptocurrency market?
Is the crypto market poised for a $300 billion market cap in Q1?
The spike in volumes in the current bull run signals a possible momentum acceleration of the uptrend in the near term as traders and investors continue to show confidence and invest in the market. Bitcoin and altcoins alike are setting bottoms signaling the end of the two year bearish momentum and a start of an uptrend. While Bitcoin (BTC) has seen its price grow to $8,700 USD in 2020, some altcoins have doubled their returns in the same period such as Bitcoin Cash (BCH), Ethereum Classic (ETC) and Bitcoin Satoshi Vision (BSV).
The soar in top altcoin market has pushed the total market capitalization past the $250 billion USD mark and with daily trading volume on the up, the market cap may be set to breach $300 billion USD.
What caused the spike of volumes to weekly ATH?
The current crypto market remains immature and faces the risks of manipulation and wash trading, two activities that boost the volumes traded. However, looking at most of the trades, BSV being a crucial example, the volume traded does not reflect the liquidity in the market. Hence, relying on these metrics for future price predictions may not be the best indicator on how the crypto market will perform in future.