Cryptocurrencies Bounce from Intraday Lows as Bitcoin Price Stabilizes, Stellar Regains Momentum
The crypto markets were back in positive territory Saturday, with prices rebounding from an intraday slump that saw the likes of Stellar XLM post double-digit percentage losses.
Crypto Market Update
Bitcoin and the largest altcoins were seeing green Saturday afternoon, as bullish sentiment returned to the market following an earlier slump. At the time of writing, the combined value of all cryptocurrency was $282.7 billion, according to CoinMarketCap. The market bottomed closer to $272 billion at 21:00 UTC on Friday. Total trade volumes were $12.3 billion, a decline of 20% from the previous day.
The bitcoin price reached a low of $7,262 Friday before swinging sharply in the opposite direction over the next 16 hours. Bitcoin now sits at $7,411, with average daily volumes hovering near $3.9 billion.
Stellar XLM – the week’s top performer – was down 10% earlier in the day as bullish sentiment wavered. However, Lumens have bounced back sharply, and now trade more than 6% higher compared with 24 hours ago .The Stellar price currently sits at $0.291.
Stellar returned a whopping 53% for the week through Friday on reports that IBM was looking to launch a new stablecoin on the XLM network.
Ethereum was also trading in positive territory Saturday following a week of modest gains. At the time of writing, ETH/USD held near $467 for a 24-hour return of 3.8%.
Trading volume – the amount of a security that changes hands over a given period – is a hotly debated topic in the cryptocurrency market. Last month, Hacked reported on a recent study showing that a large chunk of crypto trade volume is fabricated by exchanges.
Cryptocurrency trader and researcher Sylvain Ribes concluded that more than $3 billion in claimed trading volume was fabricated. The study, which was carried out in March, outed OKEx as the worst offender with over 90% of its order books being nonexistent.
While we have not been able to verify Ribes’ claims, data provider CoinMarketCap has announced new measures to crack down on fake volumes.
Now, data provider CoinMarketCap has announced new measures to address what it says could be fake volume figures.
In a blog post published Thursday, the site said it has already lowered a minimum volume requirement for digital currency exchanges listed on the site. The policy is intended “to filter for more popular exchanges that could be listed on CoinmarketCap.”
The blog post identified three “volume concerns” it intends to tackle, including fee-free mining models, low fee models and artificial volumes.
The post added:
“While we have a relationship with most of the exchanges listed on our site, there is no guarantee that any of them will respond or comply to any specific guidelines, but we have to continue showing users the best approximation of price and volume based on all the data we have available.
The evolution of new models such as transaction mining also means that there needs to be new ways to account for volume. Compounding it is the fact that they are, in fact, enabling greater liquidity in the way that users are trading more readily on the platforms.”
CoinMarketCap added that its volume data reflects of “best approximation of price and volume” based on available data.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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