On-chain transaction volumes of Bitcoin have hit a 10-month high in April after months of a declining trend, revealed Diar.
The report outlined that Bitcoin transaction volumes rebounded after reaching a low last February and the uptrend was boosted following the recent rally of the digital coin’s price.
“On-chain value of both Bitcoins and US Dollar value continue to follow price trends indicating the king of cryptocurrencies has yet to find any footing outside of speculative trading almost two years on from entering the financial challenger hall of fame,” Diar noted.
The total amount involved in the transactions was recorded at over $130 billion – a 14-month high. “With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of Bitcoin averaged $7000 – 35% higher than today,” the blockchain research firm added.
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A reverse trend
However, due to the dominating bear in the market, the quarterly total is going down. “Whilst 1Q19 remains almost a whopping double the volume than that for the same period in 2017 in USD terms, quarter-on-quarter on-chain activity for Bitcoin has been in decline since the end of 4Q17,” Diar stated.
The quarterly figures for 2019 also followed the declining trend by as 2019’s first quarter volume went down by 35 percent from the previous quarter.
“2Q19 has kicked off on a higher note compared to previous years,” Diar added.
Sudden surge in price
Bitcoin’s value reached around $3,200 in December 2018, exactly after a year it peaked at $20,000 a piece. The price of Bitcoin, however, rebounded drastically in April by gaining around $2,000 in 48 hours. The rally was not supported by any significant development in the market and was considered to be a speculative one.
This also pushed the demand for Bitcoin futures as the United States’ CME Group revealed that its Bitcoin futures contract trading volume reached record high on April 4th.