Ethereum (ETH) is currently being traded under $200 dollars according to CoinMarketCap. Bitcoin (BTC), instead, is getting closer to $6,300 the lowest point in the last two months. Cryptocurrencies have also reached new trading volume lows.
Cryptocurrencies Fall Amid Trading Volume Lows
In the last weeks and months, Ethereum and Bitcoin operated with a very low volatility. Indeed, their price remained stable, something that is not usual for virtual currencies. Since August 9, Bitcoin is being traded between $6,000 and $7,200 dollars. However, since the beginning of September, Bitcoin is being traded between $6,300 and $6,750.
During the same period of time, Ethereum did not perform so well as Bitcoin. Indeed, the second most valuable virtual currency lost 42% of its price since August 9. Stability for Ethereum started the second week of September. Since that moment, Ethereum has been traded between $190 and $240 dollars.
According to a new study released by Diar, cryptocurrency trading volume has hit a 1-year-low. Diar is a market research group that focuses on digital currencies. During the month of October, Bitcoin trading volume was under $1 billion dollars. Compared to the last year, this represents a drop of 38%.
Diar wrote on the matter:
“At current prices, Bitcoin is a few short days of hitting a one year low. But trading volumes have plummeted already reaching that mark, both in terms of US Dollars value, as well as Bitcoins.”
The report shows that despite an increased activity from banks and investment companies, virtual currencies were not able to pick new interest. In the coming months, the Intercontinental Exchange (ICE) could launch a new platform known as Bakkt. The company aims at creating an institutional-grade crypto platform for wealthier investors.
Later in 2019, the U.S. Securities and Exchange Commission (SEC) could take the decision to approve the first virtual currency exchange-traded fund (ETF).
If these two events succeed and attract new investors, we could see the price of these two virtual currencies grow once again. However, if the market does not trigger a bull run, we could be in a longe bear market than previously expected.
Bitcoin has a market capitalization of $110 billion dollars. Ethereum price allowed the coin to get a market cap of $20.36 billion dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
