Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)
What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.
I’m curious if anyone can give me some insight?
Low daily volume means more people are holding than trading it which will make the price to be increased in the long term but in short term it maybe easier to manipulate the prices but when someone starts to liquidate their funds will increase the demand back.
In fact, even at the beginning of 2020, many analysts talked about the shortage of Bitcoin in the market, especially their forecasts were based on the expectations of cryptocurrency users from a halving that took place in May 2020. Thus, a decrease in the volume of Bitcoin trading is possibly the result of a shortage in the market and as a result of this, one can really expect an increase in Bitcoin prices, the main thing is that demand be stable.
When 2020 began, no one expected that there will be a pandemic called covid 19 so they predicted bitcoin price on normal scenario but now we are in extremely depressed economy still bitcoin managed to hold its position which is really a great thing right?
If demand gets stable then the price will also become stable so we set that $10,000 is going to be the price range of bitcoin forever?