The reduction in the commercial volume of Bitcoin goes hand in hand with the fall in the price of the first cryptocurrencies. It goes at the same time with the increase in inflationary levels in the US economy.
A report recently published by the firm Arcane Research revealed that Bitcoin’s trading volume crumbled down to new lows last weekend, just within the framework of the drop seen in the prices of the first cryptocurrency.
According to these events, the report reflects that the average daily volume of Bitcoin (BTC) traded last weekend went between USD $ 18,000 million and USD 22,000 million, a figure that declined between 10% and 20% compared to what happened on the last July 3-4.
Along with this reduction in the trading volumes of Bitcoin, it is also vital to consider that volatility seen around its prices has fallen, as the price seems to settle between USD 30,000 – USD 33,000 per unit, prices at the end of January of this year. This time is the same that the digital currency used to get on top, setting new all-time highs. As such, heading into the last month, the price of the principal digital currency fell more than 12%.
Each Bitcoin trades at an average of USD 32,664 per unit, with a drop of 1.42% in the last few days.
Ethereum Price Falls Below $ 2,000 per Unit
Another important event that took place a few hours ago was the sudden decline in the price of Ethereum (ETH), the second digital currency with the largest market capitalization, which fell below USD 2,000 per unit on July 13.
Data published in various price indices indicate that Ethereum is trading at about USD 1,941 each unit, with a drop of 4.57% in the last 24 hours. However, from a weekly perspective, the decline has been more significant. For seven days, there was a speak of reduction circling 15.9%.
Although the evolution of Bitcoin generally makes its effect felt on the price of the digital currencies, several analysts point out that Ethereum would be keeping a correlation with bitcoin, due to the growing institutional interest that starts to emerge about the cryptocurrency. This interest might represent a good investment asset precisely because of its associated properties.
Another relevant aspect regarding Ethereum is that next August, an update will happen in the network. This update would provide the digital currency with deflationary features that would further reinforce its commercial value.
Inflation Increases in the US
Perhaps the most notable event cited in recent days relates to the increase in inflationary levels recorded by the US economy this month, which shows all-time highs not seen since 2008.
A report published today by the EFE news agency stated that year-on-year inflation in the US rose to 5.4%. Data reported by the Bureau of Labor Statistics (BLS) indicates that this happened because of the increase in the cost of second-hand vehicles (10.5%) and gasoline (2.5%).
By: Jenson Nuñez
