Bitcoin Volume Up After Rally, But Very Below H2 2022 Levels

Data shows the Bitcoin spot trading volume has barely gone up after the rally but remains to be significantly lower than the typical for the 2nd half of 2022.

Bitcoin Spot Trading Volume Has Gone Up A Bit This Week

As per the newest weekly report from Arcane Research, there was low speculative activity within the BTC market recently. The “trading volume” is an indicator that measures the full amount of Bitcoin being transacted on the Bitwise 10 exchanges on any given day.

While the amount on the Bitwise 10 exchanges is actually not all of the activity there’s in the complete BTC market, the rationale why they’ve been chosen is that their data is essentially the most reliable available out of all of the platforms, and their volumes still provide an honest approximation for what the trend in the whole sector looks like.

When the worth of the trading volume is high, it means numerous coins are being moved across these exchanges without delay. Such a trend suggests traders are lively within the Bitcoin market currently.

Alternatively, low values imply not many investors are trading the cryptocurrency. This type of low activity could be a sign that the final interest within the coin is low for the time being.

Now, here’s a chart that shows the trend within the 7-day average Bitcoin trading volume over the past 12 months:

Looks just like the 7-day average value of the metric hasn't been too high in recent days | Source: Arcane Research's Ahead of the Curve - January 10

As displayed within the above graph, the Bitcoin 7-day trading volume recently slumped to low values because the crypto had been stuck in infinite consolidation.

In the previous couple of days, nevertheless, the indicator has seen some growth as the newest rally in the worth to $17,400 has barely renewed trading interest within the coin.

Nevertheless, from the chart, it’s apparent that these current values are still substantially lower than the typical observed throughout the second half of last 12 months. This is able to suggest that not enough activity has returned to the market yet.

Normally, any rallies in the worth require numerous traders to be sustainable; there have been some instances prior to now where a pointy price move wasn’t accompanied by a rise in trading activity, and so it wasn’t long before the movement lost momentum.

There hasn’t been any significant increase within the trading volume with the present rally, however the incontrovertible fact that there has still been an increase in any respect could also be a positive sign for this move.

The report notes that one implication of the newest low trading volumes has been that the revenues of exchanges have taken a success. This has led to the crypto exchange Coinbase cutting around 950 positions, as announced yesterday.

BTC Price

On the time of writing, Bitcoin is trading around $17,400, up 3% within the last week.

Bitcoin Price Chart

BTC seems to have observed an uplift in the previous couple of days | Source: BTCUSD on TradingView

Featured image from Traxer on Unsplash.com, charts from TradingView.com, Arcane Research

Leave a Comment

Copyright © 2024. All Rights Reserved. Finapress | Flytonic Theme by Flytonic.