The cryptocurrency Bitcoin (BTC) is resilient in the face of market instability

Most of the cryptocurrency market is currently experiencing a sharp decline, especially in the last few days. Bitcoin (BTC) is not spare this bearish movement. The question is why such a drop in price does not lead to a decrease in the number of token transactions.

The price of BTC is constantly falling

Since July 2021, the price of Bitcoin has been falling steadily. Currently, it is at its lowest level. Over the past few months, bitcoin has reached about $ 40,000. However, there are many variations and sometimes the fall is replaced by a sudden rise. The peak reached $ 69,000 last November. The least we can say is that the instability is clear and this worries investors who prefer to avoid risky assets.

The fall is not about to end. The proof is that the price of BTC fell another 10.2% in just 24 hours, that is to say from May 09, 2022. So BTC is now estimated to be $ 31,000, although it was still at $ 36,000 this Friday spent. If the downturn continues, will BTC fall all the way to $ 20,000? That’s the whole point.

There are many factors that lead to such a collapse, whether for Bitcoin or other cryptocurrencies. Risky assets are not immune from major challenges such as the war in Ukraine, the state of health (Covid) or even the closure of mining farms by the Chinese state. During this crisis, they are more vulnerable than ever.

The number of Bitcoin transactions is at its peak

Despite a bearish streak, the signal trading volume is steadily increasing. In 7 months, its transaction volume reached 293,520 BTC. Far from being a simple estimate, the data is accurate and provided by Glassnode, an On-Chain metrics platform. These are recent data from 09 May 2022.

The current price of BTC is the result of a dramatic fall, it is admitted. But that has not stopped $ 9.7 billion worth of Bitcoin trading during this downturn. On May 8, 2022, the transaction volume again reached 293,348 BTC, a true record considering the current price of Bitcoin.

Conclusion

The volatile nature of cryptocurrencies including Bitcoin is coming to light. The instability of the cryptocurrency market is insurmountable and Bitcoin has seen a dramatic decline. However, the transaction size of the signal is intact, even in bloom, which is positive.. The whole thing is to bet on flagship cryptocurrencies, which are against dangerous economic and social situations.

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Emile Stantina

Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was evident. The blockchain is definitely the universal tool of tomorrow.