Bitcoin price swings translates into big volumes

Bitcoin, the red-hot digital currency, had a wild weekend and that appears to have translated into record-breaking trading volumes across the cryptocurrency market.

Bitcoin crashed more than 25% from Wednesday’s all-time high to a low of $5,617 Sunday. Bitcoin cash, the rival clone of bitcoin, witnessed an impressive rally that propelled the coin to a record-high of $2,500 early Sunday morning.

The 24-hour trading volumes for cryptocurrencies reached a record high above $26 billion on Sunday, according to data site CoinMarketCap.com, the highest ever.

To put that in perspective, that is higher than the 5-day average trading volumes for two US stock exchanges. Both IEX, the upstart exchange based in New York, and the Chicago Stock Exchange averaged less than $10 billion in trading each day for the last five days, according to data by Cboe Global Markets.

IEX saw $7.8 billion worth of shares exchange on its venue, whereas CHX witness $3.1 billion in trading volumes.

New York Stock Exchange and Nasdaq, on the other hand, saw more than $50 billion worth of shares exchange daily on average over the last 5 trading days.

Still, the record cryptocurrency volumes over the weekend indicate the growing interest in the red-hot market, which until very recently has rarely witnessed daily trading volumes over $10 billion.

In an October 16 note to clients, Bank of America Merrill Lynch said cryptocurrencies present a $1.6 billion opportunity for Wall Street. The figure was based on the assumption that cryptocurrency volumes end up at about 10% of current fiat currency trading volumes. Here’s the bank: […]

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