The Bitcoin price seems to be stuck between a rock and a hard place for the foreseeable future. Even though yesterday was a good day, and prices passed the US$215 threshold once again, things are looking a lot less enthusiastic today. Both the Bitcoin price and trading volume are down several percent across all fiat currencies when comparing the numbers to yesterday’s statistics.
Rather Low Trading Volume
When less Bitcoins get traded, there are usually far less price swings, which is a positive thing. However, it also means there are less chances for the price to increase slowly, and a higher chance of people panicking and driving the price down once again. It looks like the latter is happening today, as the trading volume on the USD markets is just over half of what it was 24 hours ago.
There is not one particular exchange to blame for this though, as BitFinex, Bitstamp, Coinbase and BTC-e all see far less trading volume today. Keeping in mind that most people in the US are just waking up right now, and the North American Bitcoin Conference begins today, these might be a few reasons to explain the “shortage” in Bitcoin trading volume today. However, it is also possible both of these factors are completely unrelated, so it’s hard to tell at this point in time.
The Chinese trading markets on the other hand are seeing a healthy volume compared to 24 hours ago, even though it is also slightly down at this point in time. But as most of the Bitcoin volume is being traded across Chinese exchanges against CNY, this volume will most likely pick up over the next few hours once again.
European customers are not all that interested in trading Bitcoin today by the looks of it, as the trading volume is just over half of what it was 24 hours ago. Just like it’s USD counterpart, all exchanges are suffering from less trading volume. Then again, we still have 8 hours in the day left here in Europe (GMT+2 that is), so it might settle down by the time the clock strikes midnight.
Both the Canadian and Russian markets have always been relatively quiet as far as Bitcoin trading is concerned, yet even those markets are seeing less trading volume today. It is hard to judge whether or not this trading volume will pick up, but some analysts feel that these markets are “neglectable on the grand scale” for the time being.
A Minor Price Setback
When comparing the Bitcoin price to where it was at just 24 hours ago, all fiat currency markets appear to be relatively stable for the time being. In fact, we see a price decline between 1.41% and 3% across all markets. The biggest losses can be found in the BTC/RUR market, but given Russia’s stance on Bitcoin, that should hardly come as a surprise.
Despite only half the trading volume compared to 24 hours ago, the European fiat currency markets seem to be doing quite well, flip flopping between a small loss and a small gain compared to yesterday’s price. So far, this is the only fiat currency market to see a gain at certain intervals today, but as the day is far from over, this might change quicker than you’d think.
We can only hope that Bitcoin stays above the US$200 price mark for the time being, and that we can start rebuilding the value some time soon. However, once never knows what is around the corner for Bitcoin and other cryptocurrencies.