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Bitcoin’s all-time high could be far away due to low trading volumes
Bitcoin’s all-time high could be far away due to low trading volumes
Bitcoin

Bitcoin’s all-time high could be far away due to low trading volumes

By Giorgi Mikhelidze - 2 Dec 2020

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Bitcoin’s recent all time high has engulfed the whole crypto community.

The world’s largest cryptocurrency managed to conquer new heights and reach its all time high, which was not anticipated back in the first quarter of 2020 when the coronavirus pandemic was roaming around the world. The virus has not gone anywhere, but Bitcoin stood on its feet and gained value.

Currently, Bitcoin’s price is over $19,000. Experts think that it is capable of reaching even $100,000. But there are also hypotheses that Bitcoin’s all-time high could be far away because trading volumes will certainly go down. In this article, we will have a look at this topic.

Trading volumes will go down

Sooner or later it is inevitable that the trading volume of Bitcoin will decrease significantly. Why? Because BTC is now more useful as an investment rather than as a means of exchange. People will stop using it to buy things (or use it on online casinos) as they’re anticipating the price to grow even further. 

Online casinos have become one of the most popular industries where Bitcoin is widely used. According to Casinocrunch, the number of Bitcoin casinos and BTC transactions has risen sharply in the past years.

Because of the reduction in purchasing, volumes are expected to go down, dragging the price with it. So we might be witnessing a delay in the rise of BTC’s price.

What other Bitcoin predictions have been made?

The most famous cryptocurrency is ready to reach new heights, but it may well be that BTC is close to the end of the growth phase.

On November 18th, BTC traded at $18,488 and continued to rise. What is the reason for such a rapid rise in the price of the cryptocurrency? Frustrated with the usual assets and fiat money, investors are looking for an alternative. Part of the finance goes into cryptocurrencies, and the main beneficiary of this is bitcoin.

It may well be that BTC in this climb phase will update the peak at $19,800. However, the technical picture shows that the growth phase is close to completion. 

At the moment, it is hard to say whether bitcoin, along with other popular cryptocurrencies, will become a part of everyday life – penetration into everyday financial flows of digital money is still very far, although it is worth admitting that the work in this direction is underway, and very energetic. However, so far BTC is more perceived by the main volume of investors as a speculative asset. At least that’s how the price behaves.

Conclusion

So what should we anticipate? Considering the fact that Bitcoin is very volatile and its price fluctuates all the time it is very difficult to make accurate predictions regarding the world’s largest cryptocurrency. Perhaps no one would have expected Bitcoin to gain its traditional value after the coronavirus pandemic but it did. Bitcoin still has a long way to go to reach an all-time high, as trading volumes will diminish notably.

Giorgi Mikhelidze
Giorgi Mikhelidze

Giorgi is a Georgia software developer with two years of experience trading on the financial markets. He is now working to spread the knowledge about the Blockchain in his country and share all of his findings and research to as many crypto enthusiasts as possible.

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