Amidst the crypto market dip and subsequent slight recovery, Bitcoin trading volumes have surged to touch record levels, even though a few concerns remain.
The latest crypto dip did erase major gains from the crypto market, with Bitcoin falling below $50,000. However, the market has recovered to an extent, with mixed results from various tokens. At the same time, Bitcoin trading volumes have spiked to record levels. Record levels of token holdings in the crypto market have been exchanged in the last few days. Meanwhile, even the slight Bitcoin recovery in the last 24 hours comes as a relief for crypto investors.
A likely reason for the decline in the market could be the sell-offs in the equity markets worldwide. The effects of the stock market crash have spilled over to other assets, including crypto. Since the reason for the crypto dip is not a fundamental one, a broad recovery may occur as soon as sentiments improve.
The crypto ETFs in the US also saw outflows during the days of the dip. A silver lining amidst the current dip is the heavily discounted prices of crypto tokens. Even a slight improvement in investor sentiments may lead to traders buying crypto.
Moreover, prominent traders have also pointed to the correction mimicking the crypto market’s past trends. If the trends repeat, one may witness a crypto rally this year.
BTC/USD 1D price chart
Bitcoin is currently trading at around $55,000 on August 6, 2024, with BTC/USD trading higher by a margin of around 7% in the last 24 hours. Bitcoin’s market cap was trading at around $1 trillion in the last 24 hours.
BTC/USD is trading lower than its 20-day EMA (around 63,000), as BTC’s 24-hour volume was at approximately $71 billion. The global crypto market cap increased by around 10%, trading above $1.9 trillion. BTC’s year-to-date returns are above 31%.
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