{"id":425964,"date":"2020-06-02T22:45:37","date_gmt":"2020-06-02T22:45:37","guid":{"rendered":"https:\/\/wncen.com\/?p=425964"},"modified":"2024-06-11T12:47:39","modified_gmt":"2024-06-11T12:47:39","slug":"bitcoin-spot-market-could-exceed-daily-volume-of-all-u-s-equities-in-4-years-at-current-growth-rate","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/bitcoin-spot-market-could-exceed-daily-volume-of-all-u-s-equities-in-4-years-at-current-growth-rate\/","title":{"rendered":"Bitcoin Spot Market Could Exceed Daily Volume of All U.S. Equities in 4 Years At Current Growth Rate"},"content":{"rendered":"
According to the latest CoinMetrics report, if Bitcoin\u2019s current growth rate can be maintained, its current daily volume from spot markets would need less than 4 years of growth to exceed the daily volume of all U.S. equities.\u00a0<\/span><\/p>\n With a resurgence of institutional interest in Bitcoin<\/a>, cryptocurrency analytics company CoinMetrics anticipates that businesses and financial institutions looking to invest in cryptocurrencies will first want to look at its trading volumes.<\/span><\/p>\n In a <\/span>preview<\/span><\/a> of an upcoming research piece with ARK Invest, CoinMetrics applied different calculation methodologies to Bitcoin\u2019s daily volumes and came up with significantly different results with each approach. <\/span><\/p>\n At the spot market level of aggregation, which the company assumes would be the most appealing for institutions, the report estimates that the trading volume of BTC spot markets on major exchanges quoted in U.S. dollars is $0.5 billion per day.\u00a0<\/span><\/p>\n <\/p>\n \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0BTC’s volume figures in different markets. (Source: CoinMetrics<\/a>)<\/span><\/i><\/p>\n While this represents a significant increase for Bitcoin, its daily trading volume on spot markets of only $4.1 billion is still minuscule in comparison to the spot volume of other asset classes.\u00a0<\/span><\/p>\n <\/p>\n Daily spot volumes for BTC, equity, bond, and FX markets. (Source: CoinMetrics<\/a>)<\/span><\/i><\/p>\n The conclusion from the CoinMetrics report is that Bitcoin, in its current state, is most comparable in size to a large capitalization stock than a distinct asset class. This could force a large institutional investor to see Bitcoin as only suitable for a portion of a small allocation to alternative assets, the company said, adding that it doesn\u2019t see institutions carving out a separate allocation to Bitcoin in its current state.<\/span><\/p>\nLatest CoinMetrics Report Analyses Bitcoin\u2019s Fragmented Volumes<\/strong><\/h2>\n
Minuscule, But Showing Huge Potential\u00a0<\/strong><\/h2>\n