At the moment of writing this article, Bitcoin is trading in the green, and the most important coin tiny he crypto market is priced at $9,703.61.
Coin Metrics said that if the past is a sort of prologue, it will not be too long until Bitcoin’s yarding volume matches other major asset classes.
Comparing Bitcoin’s trading volume to US equities, bonds, and global FX markets
In a new report, the crypto analytics company is comparing BTC’s current trading volume to the US equities, bonds, and global FX markers.
Bitcoin’s daily spot market volume is $4.1 billion and by comparison, “the daily volume of the US equity spot market is $446 billion, $893 billion for the US bond spot market and $1.98 trillion for the global foreign exchange spot market,” as reported by the online publication the Daily Hodl.
Looking at these numbers, Coin Metrics said that BTC has more room to grow and it’s more comparable to the one of a large capitalization stock.
“If historical growth rates can be maintained, however, Bitcoin’s current daily volume from spot markets of $4.3 billion would need fewer than 4 years of growth to exceed daily volume of all U.S. equities. Fewer than 5 years of growth are needed to exceed daily volume of all U.S. bonds,” according to the report.
Market conditions are favorable to Bitcoin
The same report also highlights the fact that the market conditions are favorable to Bitcoin these days:
“On the margin, the policy response to the coronavirus, the protest-related civil unrest in the United States, and the potential for a re-escalation of the trade war between the United States and China should be supportive for store-of-value assets such as Bitcoin.”
More than that, the same report also makes sure to point out the high level of correlation between gold and Bitcoin.
We recommend that you check out the complete Coin Metrics report in order to find out all the details.
