Global bitcoin trading volume down 37 per cent
Worldwide bitcoin trading volume has decreased by up to 37 per cent compared to last year. However some countries have also registered strong growth in the use of the currency, as shown by a new infographic from Block-Builders.de. In Latin America in particular, BTC is becoming increasingly important and living up to its reputation as a crisis currency.
The decline in trade volumes is particularly sharp in China (62.3 per cent), Russia (51.2 per cent) and the USA (42.8 per cent). The trend in Switzerland was completely different: here, transactions rose by 160 per cent.
Volumes also increased in Argentina, Chile and Colombia, even doubling since 2019 in the case of Argentina. As the infographic shows, the country faces a precarious situation, with the inflation rate there recently rising by 53.6 per cent compared to last year. In Germany, inflation rose by just 1.4 per cent. Investor confidence in Argentina reached a new low, and as a result more and more investors have been opting for the decentralised Bitcoin concept.
Meanwhile a glance at the price development shows that Bitcoin is among the big winners in the 6-month review, the price of the cryptocurrency increasing by 22.7 per cent. The value of crisis asset gold only increased 10.7 per cent in the last six months. Developments on the stock market were completely different: the Dow Jones and DAX fell by 4.8 per cent and 5.6 per cent respectively.
"Although trading volumes have decreased in many countries,” says Block-Builders analyst Raphael Lulay. "This could also indicate that investors are increasingly holding on to their previously purchased coins without trading or disposing of them. Overall, the current development seems to support the claim that Bitcoin is a safe haven in times of crisis."