Bitcoin’s Monthly Trading Volume Soars Past Yearly Average, Signalling Bullish Prospects: What It Means for South Africa

  • The monthly average trading volume of Bitcoin has surpassed the yearly average for the first time since the LUNA collapse, potentially indicating an upcoming bullish trend in the market. This shift is demonstrated as the 30-day SMA trading volume has now slightly crossed above the 365-day SMA.
  • The increase in Bitcoin trading volume has been accompanied by a significant rally in the cryptocurrency's price, which has now exceeded R577,040. This surge in trading activity reflects increased investor interest and could possibly suggest a future bull market.
  • These global trends could have a significant impact on South Africa's burgeoning cryptocurrency market. The potential bullish trend could stimulate investment, drive economic growth in the fintech sector, and encourage technological innovation within the country.
BITCOIN

Bitcoin, the pioneering cryptocurrency, has recently hit an intriguing milestone. Data demonstrates that the monthly average trading volume of Bitcoin has now exceeded the yearly average, a development which could bode well for the digital asset. This noteworthy shift is relevant not just on a global scale but holds significant implications for the burgeoning cryptocurrency market in South Africa.

A recent study by on-chain analytics firm Glassnode has observed that the Bitcoin 30-day simple moving average (SMA) trading volume has edged above the 365-day SMA. This pattern has only previously manifested following the LUNA collapse, marking this as a momentous event in the cryptocurrency’s trading history. The term “trading volume” refers to the total quantity of Bitcoin that investors move around on the blockchain.

A high trading volume typically suggests that a substantial amount of Bitcoin is involved in transactions across the network, indicating that traders are currently highly active in the market. This increased activity often coincides with periods of market optimism and could be a sign of an impending bullish trend. Conversely, low trading volumes could hint at a dormant market, suggesting that investor interest in Bitcoin is currently muted.

Data charts illustrate that the recent increase in Bitcoin trading volume correlates with a sharp rally in the cryptocurrency’s price, which has now surpassed the R577,040 mark (equivalent to $31,000 at an exchange rate of 1 USD = 18.64 ZAR). As is often the case, such rallies attract investor attention, leading to heightened trading activity and volume. This surge in trading activity is reflected in the volume crossing the yearly average.

The latest uptick in Bitcoin’s monthly average trading volume has now caught up to and slightly surpassed its 365-day SMA. This pattern indicates that the monthly average trading volume has finally eclipsed the yearly average, a signal that could potentially herald an imminent bull market.

Historical data reveals that, apart from a brief period around the time of the LUNA collapse, the 30-day SMA has remained below the 365-day SMA throughout the bear market and subsequent rally. This pattern underscores a generally low level of activity in the asset during this period.

However, if the recent crossover between the 30-day and 365-day SMA volumes persists, this could suggest a reversal in the trend, marking a shift from bearish to bullish market conditions. Unlike the crossover observed during the LUNA crash, this development could signify a more sustained increase in trading activity.

For South Africa, this increased global interest in Bitcoin could drive up investment in the local cryptocurrency market. The potential bullish trend could stimulate the South African economy, spurring growth in the fintech sector and encouraging technological innovation. As such, South Africa, with its rapidly growing cryptocurrency market, stands to benefit significantly from these global trends in Bitcoin trading

Visited 1 times, 1 visit(s) today

Stay ahead in the financial world – Sign Up to Rateweb’s essential newsletter for free. Get the latest insights on business trends, tech innovations, and market movements, directly to your inbox. Join our community of savvy readers and never miss an update that could impact your financial decisions.

Do you have a news tip for Rateweb reporters? Please email us at

Related

Personal Financial Tools

Below is a list of tools built to assist South Africans to make the best financial decisions:

Latest

Rateweb

South Africa’s primary source of financial tools and information

Contact Us

admin@rateweb.co.za

Disclaimer

Rateweb strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions.

Rateweb is not a financial service provider and should in no way be seen as one. In compiling the articles for our website due caution was exercised in an attempt to gather information from reliable and accurate sources. The articles are of a general nature and do not purport to offer specialised and or personalised financial or investment advice. Neither the author, nor the publisher, will accept any responsibility for losses, omissions, errors, fortunes or misfortunes that may be suffered by any person that acts or refrains from acting as a result of these articles.