Mammoth rise in volume. Anyone got any theory as to why we’ve seen such a sudden big increase in trading volume?
2 min read
The rise in volume has been so big, my chart on Binance got completely squished:
Here’s a comparison of the volume prior to the spike.
Compared to the average volume we’ve had for the past several weeks, this volume is now around 20 times what we normally had.
On the one hour chart, it looks like the Burj Khalifa:
Here’s the daily volume comparison for the entire bear market:
I have a few theories:
1- Selling pressure has been exhausted. All sellers have already pulled out. We may be entering an accumulation phase.
2- Celsius wasn’t dumping Bitcoin. It was swapping its wBTC for BTC, at a big volume.
3-Just like with stocks, the market is trying to buy the rumor, and trying to jump early on a future economic recovery. They’re not gonna wait until the bullish news start to pour out.
4-Many whales, institutional investors, hedge funds, and big players, may have been holding off on buying for several months, possibly since late last year. And with the bloodbath on retailers, and signal of a bottom, they are jumping back in.
5- There is a big increase on margin trading, and borrowing. People may be broke, but they still want to take advantage of the price drop. So they are starting to use borrowed money. Also big players are close to get margin called, and maybe are trying to pump back the price. Probably also with a lot of borrowed money.
6- Short and longs are battling it out at much higher intensity.
7- Free trading fees on Binance.
It might really be a combination of many of those.
submitted by /u/fan_of_hakiksexydays
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