Technology News:the number of average daily trades of Bitcoin has fallen by more than half in 2 months.
Earlier this year, when digital currencies have the largest market capitalization has fallen more than 60% compared with the previous record peak levels, a factor at least more attention also decline: the number of daily transactions of the Bitcoin.
Bitcoin is being “abandoned” when the average trading volume per day declined only half the level of the peak late 2017.
There are many reasons are given to explain for this, from elements of the software to the market’s negative information. But even if the price of your Bitcoin rise again in early February, 50% the number of daily transactions of digital currencies remained steady. Fact aroused fears that Bitcoin has been “abandoned”.
The average number of transactions per day has halved compared to the time of the highest level to touch the Bitcoin, 12/2017 and hit bottom low for two years last month, even though this money back close to $11,000.
By Charles Morris, who heads the investment Division at the Newscape Capital Group (London), data on the volume of transactions could slump is bad news with the price up. Especially when fluctuations in the volume of transactions is often viewed as an indicator for the trading activities, trading Bitcoin.
“We have had a period of rising prices, and now it is hypothermia,” Charles Morris said. “The market seems to like are entering the cycle price down.”
According to Blockchain.info, the average number of transactions per day for 7 days has dropped from 400,000 in mid December trading levels down to around 200,000 transactions this week. The last time trading volume is low as this is when the lower-priced Bitcoin 500 USD.
The average number of transactions per day for 7 days has dropped to the lowest level for two years. Source: Blockchain.info
The number of transactions pending on average within 7 days of the Bitcoin system also reduced from 130 million bytes at the beginning of January to about 35 million bytes at the moment.
Transaction confirmation time of the Bitcoin fell away dramatically, thanks in part to the technology platform of the Bitcoin has been adjusted to solve the problem. For example, last week, was SegWit Protocol Coinbase enabled to change the way the data is stored on blockchain.
Besides, not all investors agree that low trading volume is a negative signal of Bitcoin. Many people believe that this can be demonstrated more healthy markets and signs of “mature”.
David Drake currently own a family company in New York that investors can be persuaded when price increases again. Bitcoin Investors are managing more than $10 million to invest virtual money also get valuation Bitcoin can increase to $35,000 at the end of the year.
The steep plunge in the Bitcoin prices recently may also cause a decrease in the volume of transactions. In addition, the popularity of the other digital currencies is also notable, as rated by Kyle Samani, who heads the investment fund Multicoin Capital. According to data from Coinmarketcap.com, capital of the Bitcoin a year ago accounted for 85% of the market, only about 40%.
“The retailers payment Center, and online games are leaving the Bitcoin”, Director of the investment fund Multicoin Capital comment. “Our portfolio to the current modest Bitcoin. I believe that Bitcoin is in da discount “.