Cryptocurrency trading rose to a record level in February as the price of Bitcoin fluctuated sharply after Tesla’s $ 1.5 billion investment, new data shows.
Crypto trading volume increased last month by 17 percent to more than $ 2.7 trillion when the electric car maker and other large corporations began adopting digital currencies, according to a report from industry data provider CryptoCompare on Friday.
The jump came when price Bitcoin – the world’s largest and oldest cryptocurrency – hit a record high of over $ 58,000 on February 21, thanks in part to bullish comments from billionaire Tesla CEO Elon Musk.
However, crypto trading was two days hardest later, on Feb.23, when Bitcoin went through a « sharp correction » and fell to around $ 43,000 after Musk tweeted that the price was « high, » according to CryptoCompare.
Nearly $ 160 billionof cryptocurrency changed hands that day, marking a new record for trading volume, according to the company’s report.
The data point to both the growing popularity of the cryptocurrency and the large price fluctuations that theirs could hinder widespread use as a fixed asset or payment method.
The surge in trade coincided with signs that the cryptocurrency was gaining traction among large corporations and institutional investors. Mastercard and BNY Mellon announced last month that they would be supporting crypto payments and investments, and the CME Group launched futures trading for Ether, the second largest cryptocurrency by market value.
Most of the increased trading flowed through the largest crypto exchanges, whose volume rose 35 percent to $ 2.4 trillion, according to CryptoCompare.
In the case of smaller exchanges, however, the volume fell by 36 percent to 381 billion US dollars, according to the company’s data.
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