Bitfinex Recovers Bitcoin Volume But Perception Battle Rages On

One week after losing more than $60m in a high-profile hack, Bitfinex is once again one of the largest bitcoin exchanges by US dollar volume.
The Hong Kong-based bitcoin exchange led its competitors in USD/BTC trading over the last week, grabbing more than 20% of the market. In total, it transacted 58,700 BTC (roughly $36m) during the seven days ending 20:45 UTC on 17th August, Bitcoinity data reveals.
While this figure puts Bitfinex ahead of all other exchanges in terms of USD/BTC trading volume, analysts were split on whether to view the development as a sign the company had recovered.
Market observers told CoinDesk the activity could either be interpreted as evidence of the exchange’s resilience, or as a signal that accountholders were seeking to recoup funds while it was still operational.
Cryptocurrency investment firm founder Jacob Eliosoff, for example, told CoinDesk:
“A lot of the activity is likely related to people withdrawing their holdings out of fear. Withdrawal-driven volume isn’t actually reassuring.”

This post was published at Coin Desk on August 18, 2016.

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