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26 April

By Ahmed Mamdouh

Category: Cryptocurrencies

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Cryptocurrencies prices plunge, yet volume soars

Cryptocurrencies dropped on Thursday on some profit taking by investors after the recent rally that took the Bitcoin near the 10,000 mark.

The Bitcoin plunged 6.75 percent to $8760.25, while the Ethereum fell 4.43 percent to $622.68, according to CoinMarketCap.

Despite the drop in virtual currencies prices, the trading volume jumped to $12 billion, the highest since February 6, where the total market capitalization reached $388,421,622,232.

The increase in the volume reflects the rising interest of many new traders to enter the market and the return of old traders after the strong rebound in prices.

One in five financial institutions, including large banks, hedge funds and asset managers, is looking forward to begin cryptocurrency trading within the next 12 months, a survey by Reuters showed.

If the Bitcoin managed to find support at $8,770, it could rebound strongly to $10,000, yet the failure to find support at this level could push the price lower towards $8,000.

The Bitcoin has climbed more than 60 percent from February lows, yet still from December’s record high of $20,000.

The 17 millionth bitcoin is likely mined in the coming day, raising questions about the future of the leading digital currency after the end of the limited supply worth 21 million.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.