Action on some of the largest trading venues in crypto is heating up as the price of bitcoin, the largest digital currency, approaches $8,500 a coin.
Bitcoin, which spent much of 2018 in the doldrums, has seen its price soar by nearly $1,000 over the last week, reaching a two-month high on Tuesday. At last check, the cryptocurrency was trading at $8,217 a coin.
At the same time, crypto volumes — digital currencies changing hands — on exchanges have seen a spike in activity. And bitcoin bull Tom Lee, head of research at Fundstrat, says it’s a meaningful signal that the bitcoin bottom is behind us.
“It’s more evidence supporting a bottom,” Lee said in an e-mail to Business Insider.
According to Bloomberg data, bitcoin bottomed out at $5,791 on June 29. As for how high bitcoin can go in 2018, Lee has stood by his $25,000 price target.
“A few weeks ago when bitcoin started to rally, skeptics dismissed the move saying there was no volume,” he added. “Now we have massive jumps in volume.”
Across exchanges, volumes have increased to over $20 billion on Tuesday, according to data from CoinMarketCap.
Meanwhile, BitMEX, the peer-to-peer mercantile trading venue, saw record volumes, with $8 billion worth of bitcoin traded over the past 24 hours, a spokesman told Business Insider.
CME Group, the exchange behind one of the markets for bitcoin futures in the US, saw turnover for its contracts increase from 1,600 on July 3 to more than 12,800 contracts traded on July 24, according to the firm’s data.