Although shedding one third in value, market sentiment remains strong for bitcoin.
The ongoing expansion of the Lightning Network on Mainnet is continuing to build. This week, posters on social media reported that the number of nodes and the total payments structure continues to grow at a steady pace.
Bitcoin lost over a third of its market cap early in the week, despite indicators for bitcoin being in good shape. Transaction fees are down making bitcoin transactions more accessible, and there is less pressure on the network so the number of uncleared transactions is dropping.
It is unclear if those developments have shaped market sentiment. What is clear is that an increase in trading volume seems to have put the wind in bitcoin’s sails. But with the week drawing to a close, there seems to be some downwards pressure on the price of bitcoin.
Bitcoin trading began the week at US$8,792.44, according to pricing data from CoinMarketCap and it became clear as the week was underway that bitcoin would continue losing ground. Bitcoin hit a midweek-low of US$6,094.54, a price level not seen since 13 November 2017.
Over the four days to 10 February, bitcoin managed to regain its previous losses with its price rising to above US$9,122.55.
Closing out the week, bitcoin was sitting just below its perch from the beginning of the week. With signs of downward pressure on price, bitcoin was showing US$8,161.80 at the time of writing.
Bitcoin’s market capitalisation ran in line with price differentials, starting the week at US$148.1 billion. Bitcoin’s market cap soon dropped, losing nearly a third of its market cap.
In the 12 hours after reaching the bottom, there was an increase in trading volume. Bitcoin regained its losses and then some, hitting a week’s high in terms of market capitalisation at US$153.7 billion.
24-hour trading volume
In the early stages of the week, trading volume across the market reached a range of between US$6.3 billion and US$7.3 billion.
As bitcoin’s price was reaching the trough, trade began lifting bitcoin once more. In the 12 hours immediately after the week’s low, bitcoin trading volume peaked at between US$13.5 billion and US$14 billion.
Trading volume has since tapered off and has more than halved in value, returning to levels seen in trade earlier in the week in the US$6.5 billion band.