Markets Weekly is a weekly column analyzing price movements in the global digital currency markets, and the technology’s use case as an asset class.
While the bitcoin network’s capacity challenges have been generating substantial visibility, the digital currency enjoyed robust trading volume this week, with market participants transacting more than 28m BTC in the seven days through 12:00 UTC on 4th March.
Likewise, bitcoin’s price was relatively stable, falling less than 1% heading into 12:00 UTC on Friday. This figure increased to 3.3% as the price deflated to $409 by 23:59 UTC, figures from the CoinDesk USD Bitcoin Price Index (BPI) reveal.
This figure was $10 higher last week when bitcoin traded at $421.01 at 00:00 (UTC) on 26th February. The relatively modest decline was comparable to movements from week before, when bitcoin climbed only 1% after fluctuating between $410 and $450.
Still, the digital currency experienced sharp gyrations this week amid news that the network was exceeding its capacity for transactions, a development that resulted in users paying sometimes substantially higher fees.
Overall, volatility was tight this week, as bitcoin enjoyed gains on 26th February, rising 2.9% to $431.69 by 23:00 (UTC). The currency hit a local peak over