Cryptocurrency buying and selling surged to file ranges in February as the value of bitcoin swung wildly following Tesla’s $1.5 billion investment, new information present.
Crypto buying and selling volumes soared 17 p.c to greater than $2.7 trillion final month because the electric-car maker and different main firms began to embrace digital forex, in accordance with a Friday report from trade information supplier CryptoCompare.
The leap got here as the value of bitcoin — the world’s greatest and oldest cryptocurrency — hit a file excessive above $58,000 on Feb. 21 thanks partially to bullish comments from billionaire Tesla CEO Elon Musk.
However crypto buying and selling was heaviest two days in a while Feb. 23, when bitcoin went by means of a “sharp correction” and plunged to round $43,000 after Musk tweeted that the price looked “high,” in accordance with CryptoCompare.
Almost $160 billion in cryptocurrency modified palms that day, marking a brand new all-time file for buying and selling quantity, the agency’s report says.
The information factors to each the rising recognition of cryptocurrency and the massive value swings that would hamper its widespread use as an funding asset or fee technique.
The buying and selling spike coincided with indicators that cryptocurrency was however gaining traction amongst massive firms and institutional traders. Mastercard and BNY Mellon introduced final month that they’d help crypto funds and investments, and CME Group launched futures buying and selling for Ether, the second-largest cryptocurrency by market worth.
The majority of the elevated buying and selling flowed by means of the largest crypto exchanges, which noticed their volumes surge 35 p.c to $2.4 trillion, in accordance with CryptoCompare.
Smaller exchanges, however, noticed their quantity shrink by 36 p.c to $381 billion, the agency’s information present.