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The price of the bitcoin has yet to find the fund for the dismay of many investors. There have been many factors that have weighed on its price including the sale of panic. However, a recent CryptoCompare study suggests that Bithumb, one of the largest cryptographic exchanges in South Korea, may have contributed to stabilizing the price of Bitcoin longer than the fundamental and technical factors may have suggested.
End Of Bithumb's commercial promotions coincided with the sale of Bitcoin
According to the CryptoCompare Aggregate Pricing Index, the South Korean stock exchange brought further trading in the daily trading volume from October to November. It has an average of $ 1.24 billion in daily business.
In that period the exchange recorded a monthly increase of 284%. It is interesting to note that the main exchange of encryption by volume of trade, Binance saw a decrease of 34% in the same period.
But, if one bothered to check CoinMarketCap, he would find that Binance was still listed as the main trading volume cryptography exchange. It is not surprising, given that the volume of Bithump was not entirely organic as it coincided with several commercial promotions that the platform was conducting.
There was the Super Airdrop Festival and the special gift. Both promotions have seen the exchange accelerate its daily volume.
Moreover, there was a relevance of the KRW in trading on the market for critical points, although the analysis shows that the number of traders active on the platform has decreased significantly.
The report notes:
"Bithumb has seen a 284% increase in volumes compared to the previous average of $ 323 million for the period September / October.This volume increase follows after the BK Global consortium in Singapore has acquired a controlling stake in trade in the last months and then implemented a series of aircrafts, lotteries, discounts and other programs designed to encourage non-Korean users to sign up for exchange and trade in exchange for rewards.They also implemented a potential form of cross-fee mining for certain users, where trading over a certain volume is rewarded in the form of "Bithumb Cash" at a later date. "
It is no secret that higher trading volumes are always correlated with a stable price for Bitcoin. However, lower volumes negatively affect its rating.
The fact that Bithumb has managed to increase the volume of trade even if the restricted user base suggests that commercial promotions have helped stabilize the price of Bitcoin over $ 6,000 longer than it should have.
The first break below $ 6,000 was recorded after the end of one of Bithumb's promotions. In a sense, the exchange contributed indirectly to the sell-off started last month.
Speaking with CCN, Mati Greenspan, eToro's senior market analyst said that Bithumb should not be accused of the recent collapse since it helped stabilize Bitcoin's price for a while.
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