With the recent turmoil in financial markets, cryptocurrency prices saw much the same roller coaster movements as stocks, gold, and numerous other assets. Those price movements, which included significant bouncebacks from lows, resulted in record traffic and trading volume on numerous cryptocurrency exchanges, proving that not only is there still significant interest in cryptocurrencies, but that interest in cryptocurrencies continues to grow.
Coinbase in particular saw greatly increased traffic, processing over $2 billion in cryptocurrencies on some of the worst days for US stock markets, a marked increase over its normal daily trading volume. With the outlook for stock markets not looking particularly hopeful in coming months, cryptocurrency exchanges should continue to see heightened trading volume and an increased amount of interest from investors. Just like gold, Bitcoin and other cryptocurrencies will serve as safe havens and stores of value for investors looking to flee the stock market downturn.
Right now the major question has been whether or not these exchanges can deal with the huge increase in volume. With so many investors looking to put their money into cryptocurrencies, it seems likely that only the larger exchanges will have the capacity to deal with significantly greater interest and volume.
That’s all the more reason for investors to get into cryptocurrencies while they can. While cryptocurrency custodians are well prepared to deal with increased interest from investors, they still have to deal with the increased trading volume too when executing orders from customers. That’s one more reason investors in cryptocurrencies today might want to stick to a buy and hold strategy. With increased interest from investors who may not have previously been invested in cryptocurrencies, prices are bound to increase. And those investors who invest in cryptocurrencies for the long haul, rather than getting worried about periodic gains and losses, will be the ones who will benefit from that.