Bitcoin Trading Volume Will Match Major Asset Classes If Historical Growth Continues, Says Coin Metrics

Coin Metrics says if past is prologue, it won’t be too long until Bitcoin’s trading volume matches other major asset classes.

In a new report, the crypto analytics firm compares BTC’s current trading volume to US equities, bonds and global FX markers.

Bitcoin’s daily spot market volume is only $4.1 billion. In comparison, the daily volume of the US equity spot market is $446 billion, $893 billion for the US bond spot market and $1.98 trillion for the global foreign exchange spot market.

Based on these numbers, Coin Metrics says Bitcoin has a lot of room to grow, and is currently more comparable to that of a large capitalization stock than of a distinct asset class.

“If historical growth rates can be maintained, however, Bitcoin’s current daily volume from spot markets of $4.3 billion would need fewer than 4 years of growth to exceed daily volume of all U.S. equities. Fewer than 5 years of growth are needed to exceed daily volume of all U.S. bonds.”

Coin Metrics says current market conditions appear favorable to the top cryptocurrency, concluding store-of-value assets such as Bitcoin are likely to hold up in the current macro environment.

“On the margin, the policy response to the coronavirus, the protest-related civil unrest in the United States, and the potential for a re-escalation of the trade war between the United States and China should be supportive for store-of-value assets such as Bitcoin.”

The report also points out the high level of correlation between gold and Bitcoin.

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