Fall in bitcoin transactions raises questions about its popularity

London

EARLIER this year, when bitcoin's price fell by more than 60 per cent from its record close, a less noticed bitcoin figure also plunged: the number of daily transactions.

There are many explanations for the fall-off in trading, from software- to news-related. What's less understood is why the level hasn't recovered as bitcoin's price made a 50 per cent comeback since Feb 5. That has left some investors wondering whether the cryptocurrency is waning in popularity.

The average number of trades recorded daily has roughly dropped in half from the December highs and touched its lowest in two years last month, even as bitcoin became a household name and ro…