Bitcoin’s (BTC/USD) recent return to its formerly wild self showed no signs of abating over the weekend.
It soared to as high as $468 on Bitstamp, a level last visited during the crazed spike to above $500 in early November. It then plummeted 14% within two hours to $400. Price swings of this magnitude in such a time span are extremely rare, usually reserved for flash crashes. Bitcoin has since crept back to $435.
Like during last month’s market mayhem, reported volumes have set new records. According to data aggregated by bitcoinity.org, 3.3 million bitcoins were traded globally during the previous 24 hours, just shy of the record 3.44 million traded on December 5. Since the resurgence in volume 2.5 weeks ago, the daily average has been 2.6 million.
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More than 19 million bitcoins were reportedly traded during the past week, which is 27% more than the total count of bitcoins in circulation.
As the vast majority of bitcoin trading is unregulated, there are no assurances as to the veracity of the reported figures. The bulk of the figures are from Chinese exchanges, whose reported volumes have come under scrutiny in the past.
The recent price action further resembles that of November with the wider price gaps between exchanges. With bitcoin currently trading at $446 on Huobi, the “China premium” is now 2.5%. It had risen to 4% one week ago, and was frequently above 6% during last month’s rally. The premiums suggest China as responsible for dragging the markets higher.
Once again, litecoin’s (LTC/USD) reaction to bitcoin’s moves was weak. Currently trading at $3.50, the LTC/BTC rate slid to 0.0082.