One of the if not the Key factor in the 5% to 10% gainers across many of the leading digital currencies was trading volume.
Bitcoin and Ether both saw their volumes rise unexpectedly heading into July. Because many of the other digital currencies are still closely tied to the performance of the 2 Top currencies, it is not surprising that a boost to BTC and ETH would also inspire gainers down the line too.
As of 3 July, Bitcoin’s trading volume remained above $4.6-B. Ether saw its volume stabilize at $1.7-B.
This surge in volume may have long-term benefits for the cryptocurrency space as a whole. Analysts caution that low volumes across the board would prevent small corrective rallies from taking hold.
Last week, the market experienced both a solid increase in trade volume as well as 2 strong days for value increase. In response, investors headed into July with a greater degree of optimism about the crypto space than they have had for some time.
Ripple, Bitcoin cash and Cardano were among the Top performing digital tokens during the 2-day rally.
Cardano saw a daily increase of 16%. At the same time, tether saw its trade volume drop significantly from a yearly high of $4.5-B recorded on 1 July, this may suggest that investors are more interested in trading between cryptocurrencies than from cryptocurrencies to stable coins for now..
While the 2-day rally has shown promise of potential surges to come, there are still many reasons to be cautious as well.
Currently Bitcoin is trading at 6,584.9951,+116.908, +1.81%, as of 2:26a BST, the market is open
If you are playing in this space, pay attention.