The past few days have been explosive for Bitcoin (BTC). However, what makes this rally especially remarkable is that Bitcoin's trading volume has been at its highest ever for two straight days now.
A price surge without volume is generally an indicator that a rally is unsustainable. Luckily, Bitcoin's current rise seems legitimate. BTC's trading volume has been at all-time-high for two days now which is a positive indicator that its sudden price move could have the ability to sustain.
Economist and crypto-trader Alex Kruger pointed out this astonishing fact recently in a tweet of his. We may be looking at a further parabolic move for Bitcoin if this volume sustains itself or even grows.
Bitcoin. Largest volume ever. Two days in a row. pic.twitter.com/qVuzCsLBaa
However, you may be skeptical. After all, earlier this year we had reports that 95 percent of all cryptocurrency trading volume is fake. That's a staggeringly high amount. Even with this in mind, the current trading volume is still record-shattering.
For example, the trading volume on CME's BTC futures trading is also at all-time-high levels. Keep in mind, there is absolutely zero fake volume at CME.
CME Bitcoin volumes. Record highs as well. There is *zero* fake volume at the CME. pic.twitter.com/dDKW6PZ0N9— Alex Krüger (@krugermacro) May 13, 2019
The high volume should indicate that this bullish move is still picking up steam. If it was a fakeout, the trading volume would be anemic, but instead, we're seeing the opposite.
Arguably, the move was to be expected (but perhaps not this suddenly). Bitcoin's fundamentals are today stronger than ever. Transactions are currently close to their all-time-high as well. The network is more secure than it has ever been, and there are currently over 35M active BTC wallets.
The rally caught many off-guard, but it's clear that we are experiencing a snowball effect which will only continue to grow.
Do you believe Bitcoin's rally is just getting started? Is trading volume a good metric to judge interest? Let us know your thoughts below in the comments.
Images courtesy of Twitter.