Cryptocurrencies recorded strong gains in March, with trading volumes nearly doubling to their all-time high, as major currencies surged to new territories. JPMorgan (JPM) stated in a research report that the cryptocurrency market capitalization surged by 19% in March, indicating continued growth, albeit at a slower pace compared to the previous month.
The report added: “The total cryptocurrency market capitalization remained above $2.0 trillion throughout March, surpassing $2.6 trillion in mid-March before settling near the end of the month at approximately $2.5 trillion.” We witnessed a significant increase in aggregated trading volumes, according to data from TradingView, in March. The average daily trading volume across the total cryptocurrency market capitalization rose by 87% compared to the previous month and by 133% on a yearly basis. Unlike the slowdown in pace seen in February, trading velocity appeared to significantly increase in March.
Regulatory developments in the United States remained a focal point in March with several major updates. Meanwhile, net flows into exchange-traded funds for Bitcoin remained net positive in March, though slowed to $4.6 billion from $6.1 billion in February, despite Bitcoin reaching a new all-time high of over $73,000 mid-month. This initial surge in Bitcoin price led to an increase in flows into exchange-traded funds; however, this trend appears to be waning as Bitcoin’s price began trading sideways after reaching its peak.
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Shady Fouad is a technical analyst at LDN Company
Shady's strategic vision in the currency markets is reinforced by more than fifteen years of trading experience, which enables him to blend economic and technical analyzes with high efficiency, and find the best investment ideas for traders.
