The last week of bitcoin trading was a crazy one, the digital currency hitting a new 15-month high above $500 and exhibiting one of the most violent price swings in recent memory.
Drowned out by all the price noise was the observation that the total amount traded was by far the highest ever, according to data reported by bitcoinity.org.
Before we go further, the disclaimer should be made that the vast majority of all bitcoin trading volume takes place on unregulated venues. There is no assurance as to whether trades ever happened, or if they were conducted by or on behalf of real people. Furthermore, a majority of the reported bitcoin trading volume comes out of China, where the figures reported by exchanges have been a subject of scrutiny.
This all said, there is likely something to the numbers when such extraordinary price action takes place.
- On October 30, a record 2.49 million bitcoins (worth roughly $800 million) were reportedly traded- more than one-sixth (16.8%) of total number of bitcoins in circulation. This occurred when bitcoin crossed into positive territory ($320) for the first time this year.