Bitcoin’s trading volume and price have both risen steadily over the past few days. BTC is currently trading at $6,566, marking a 4.5% increase in the last 24 hours.
This upswing has led industry leaders to suggest that Bitcoin may be establishing itself as an uncorrelated asset that decouples from the turmoil on Wall Street, where the Dow Jones continues to fall despite emergency interventions by the U.S. central bank, the Federal Reserve (FED). Catherine Coley, CEO of Binance US, confirms that crypto trading volume is on the rise.
“Despite the market downturn, Binance US is seeing unprecedented trading activity, with Bitcoin trading especially active. We are also observing increased interest in stablecoins, as investors recognize the importance of hedging against volatility in highly uncertain times.”
Against the backdrop of emergency measures to rescue traditional markets — triggering circuit breakers to stop extreme volatility, injecting cash, designing stimulus packages, and conducting unlimited asset purchases by central banks to support the economy — cryptocurrency markets are operating without similar interventions. Brian Norton, Chief Operating Officer of MEW (MyEtherWallet), says that the low Ether (ETH) price, currently around $140 and roughly $147 below its 90-day high of $287, has driven strong trading volume.
“There are more people buying ETH on MEW now than ever before. We have never seen these numbers, not even during the major crash in winter 2018. Every price dip shifts transaction behavior, but this one is record-worthy if you look at the single action: buy cheap ETH.”
Despite crypto’s ability to decouple from traditional markets, Bitcoin bull Mike Novogratz, CEO of crypto investment firm Galaxy Digital, warns that Bitcoin’s trademark rollercoaster price action remains a disruptive factor. In a tweet on March 22 — just hours after the U.S. Congress failed to reach a bipartisan agreement on a proposed $2 trillion economic relief package — Novogratz wrote:
“Bitcoin will remain volatile over the coming months, but the macro backdrop is precisely why it was created. This will and must be the year of BTC.”
Industry leaders also dispute narratives of a major institutional sell-off of Bitcoin. Diogo Monica, president and co-founder of Anchorage, a custodian for digital assets, said:
“While recent reports suggested an institutional sell-off, that has not been the case among our clients. Whether VC, hedge funds, foundations, or family offices, smart money continues to view digital assets as a hedge against traditional markets. Security and transaction speed are particularly critical given the economic downturn and daily volatility.”
Coley added:
“Bitcoin’s recent jump while the rest of the market collapses demonstrates that, unlike traditional businesses, Bitcoin can and will survive without bailouts. Bitcoin was built on the idea of securely sending and receiving value, and that premise remains intact.”
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