Bitcoin price weekly analysis: Volatile times
Another volatile week with close of futures contracts and huge trading volumes seen throughout the week.
- First futures contracts on the CBOE close
- 24-hour trading volume peaks over US$20 billion again
Bitcoin showed another week typified by extreme volatility. At US$14,448.20, bitcoin began the week showing good resilience from the pounding its price endured only the week before, according to pricing data released by CoinMarketCap. Bitcoin dropped significantly again during midweek trading to a low of US$9,402.29, causing panic selling on frenzied exchanges the world over.
Despite the tumult, bitcoin rallied strongly in the latter stages of the week, clawing back over US$3,500 to close out the week at a respectable US$12,992. However, that clawback was not strong enough for the end of the first bitcoin futures contracts. Those contracts held on the Chicago Board Options Exchange closed on the afternoon of Friday 19 January 2018 at US$8,000 cheaper than when they opened a month ago.
In terms of market capitalisation, bitcoin had another spectacular week shedding over US$80 billion dollars by midweek trading. Bitcoin’s market cap began the week at US$242.7 billion and dropped to a low of US$158 billion before recovering quite strongly at US$218.4 billion.
24-hour trading volume began the week subdued and returned to similar levels by the close of the week trading on both sides of a strong mid week surge, between US$11 billion and US$13 billion.
24-hour trading volume this week was characterised by a midweek trading frenzy prior to futures contracts closing. The midweek trading high peaked at around US$20.2 billion shortly after the week’s price trough of US$9,402. To put that in perspective bitcoin’s record 24-hour trading volume is just over US$24 billion.
Aside from this, there have only been a handful of days where the 24-hour trading volume of bitcoin has registered over US$20 billion and those days have all occurred within the last three months.
That suggests that this has been another significant week in the bitcoin journey and an exciting trend to look back on as trading volumes can clearly be seen to have increased. With institutional investors like the Chicago Board Options Exchange adding legitimacy to bitcoin, those trading volume increases may well continue.
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