As the cryptocurrency winter deepens with no indication of a revival on the perspective shrinkage has been occurring across the industry. The two distinguished signs at the moment are decreasing exchange volumes and a plummet in cryptocurrency related Twitter activity.
Trade volumes across all of the chief cryptocurrency exchanges have plunged back to levels not seen since 2017. As per the research by Diar, exchanges could be set to go into a new plateau as volatility diminishes and markets cool off. Till now, 2019 has been predominantly quiet as digital asset markets pulled back in January.
The research further added that the world’s top crypto exchange by reported volume, Binance has seen its most awful period for well over a year as the BTC/USD market has been slashed by 40 percent since December 2018. As per Coinmarketcap.com, the volume of Binance is presently at $640 million which is quite inferior to the billions traded on the exchange this time last year.
It is to be noted that there have been a number of reports last year of fake volumes on some of the chief cryptocurrency exchanges. However, there is no denying that figures have shrunk across the board over the past year.
Furthermore, in addition to the far-reaching plunge in exchange volumes has been a decline in digital asset related activity on Twitter. It is to be noted that Twitter has become the standard social media platform for the industry. Well-known cryptocurrency analyst Murad Mahmudov has observed that Bitcoin-related tweets have considerably declined to levels back in 2014. He further added that this was a tremendously bearish outlook which backs up claims that the cryptocurrency winter is far from over.
It is to be noted that Murad has made a number of price predictions with the most recent seeing a plunge to $1,700 for Bitcoin by the middle of the year. Interestingly, this might provide a key level to accrue and a trend reversal has been predicted for the latter half of 2019 when the bear market final terminates.