Market: Bitcoin close to $ 58K, reverses two-day losses despite lower trading volume

After two days of losses, bitcoin ended up in green on Thursday after the US market closed

The gain came from new signs of growing adoption of bitcoin and other cryptocurrencies.

State Street, the second-oldest bank in the U.S. with $ 3.1 trillion in assets under management, has announced that it is providing the infrastructure for a new bank-level digital asset trading platform that should start operating in the middle of the year – and could eventually use the system itself.

Also, BNY Mellon, the world’s largest financial custodian, would be the provider of the proposed bitcoin trading fund (ETF), offered by Anthony Scaramucci’s First Trust Advisors and SkyBridge Capital.

But the volume of spot trading failed to match rising prices, continuing to fall on Thursday to eight U.S.-focused crypto exchanges tracked by CoinDesk.

Bitcoin trading volume has been low since early April, while in March, according to a monthly report by CryptoCompare, volume on top spots rose 5.9% from February levels to $ 2.5 trillion.

Although ether has been traded mostly above $ 2,000 since it peaked at $ 2,100 in early April, the analyst said the latest ether run was supported by more meager customer demand compared to bitcoin.

Philip Gradwell, chief economist at Chainalysis, said on CoinDesk’s “First Launcher” show that “relatively few” ethers were purchased at prices above $ 1,850, and even less at a price of $ 2,000 or more.

“The persistence of a small but very bullish cohort of ether buyers supports my concern that the highest ether prices have a narrow support base, at least compared to bitcoins,” Gradwell wrote in his weekly newsletter.

Other digital assets on CoinDesk 20 are generally higher on Thursday. Significant winners from 20:00 UTC (16:00 ET):