Is Bitcoin on the Road to Recovery?
Are immediate gains on the horizon?
Crypto mining could play a crucial role in Bitcoin's rebound.
Bitcoin has experienced significant losses recently, further exacerbated by Russia's central bank proposal to ban cryptocurrencies and crypto mining. However, after hitting some lows, Bitcoin has managed to show signs of recovery. But the question remains: is this the start of a moderate rebound?
During the crypto market's downturn, stablecoins saw a slight increase in trading volume. Stablecoins, such as Tether (USDT), which launched in 2015 and is pegged to the US Dollar, are designed to maintain a stable price. Despite Bitcoin's struggles, Tether’s trading volumes remained stable, showcasing continued demand for cryptocurrencies.
According to Kaiko, Bitcoin’s volume on Binance has dropped significantly since 2018, from holding 90% of the volume at its peak to now hovering around 10%.
Additionally, reports show that many investors liquidated their long positions, which contributed to a sell-off in BTC. However, Tether's stability in trading volume highlights the ongoing interest in crypto markets despite the volatility.
Visa reported a staggering $2.5 billion in crypto-related transactions during Q1 2022, demonstrating that demand for cryptocurrencies is still robust despite market fluctuations.
