A new report from CryptoCompare showed the volume of reputable exchanges has increased by 78.2 in November as Bitcoin hits an all-time high.
In October, the volume of top-tier exchanges has increased to $619B.
In the same month, bitcoin’s price has increased from $13,700 on November 1 to an all-time high of $19,845 last December 1.
Bitcoin has broken the previous record of an all-time high set in December 2017, on November 30.
The volume on top exchanges has increased as traders rushed in to make the most of the bull market. Binance traded $176.2 last month, around 133% compared to the previous month.
The derivatives trading have doubled in November to hit the all-time high of $1.32T. Derivatives mean products like futures and options contracts. There are other ways of speculating the price of Bitcoin. They are in contrast with spot-trading, which are also the regular token swaps.
“Bitcoin trading and derivatives volume are benefiting from the virtuous circle that happens as a new asset scales and goes mainstream,” Lou Kerner, a stablecoin analyst at Quantum Economics, stated, “This creates more opportunities for sophisticated investors to deploy complex trading strategies involving buying or shorting the asset, and using derivatives, to create arbitrage opportunities.”
Constantine Tsavliris, head of research at CryptoCompare, elaborated that the rise is dominated by “the macroeconomic backdrop of unprecedented monetary expansion and negative real interest rates, spurred on by COVID-19, has led investors of all types to look at Bitcoin as a hedge against inflation.”
Leading investors have lately considered Bitcoin as a verge against the inflation of fiat currencies. Coronavirus stimulus packages and those in the formulation by governments worldwide, cause worry that currencies might diminish as central banks create more money to cover the debts of governments.
MicroStrategy recently bought $450M in Bitcoin in the past summer based on that concern. Last week, the firm proclaimed the purchase of $50M more. And just yesterday, the company proclaimed that it plans to sell $400M worth of debt securities to purchase even more Bitcoin.
“Should the currency lose pressure, Bitcoin masks will drop from the overhead area. Please place the mask over your mouth and nose before assisting others,” CEO Michael Saylor tweeted last December 1, one of many similarities that defend his purchase.
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