Bitcoin Volume Increases After Rally, But Far Below H2 2022 Levels

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The data shows that Bitcoin spot trading volume increased slightly after the rally, but remains significantly below the average of the 2nd half of 2022.

Bitcoin spot trading volume increased a bit this week

According to the latest weekly report from Arcane Research, there has been low speculative activity in the BTC market recently. “Trading Volume” is an indicator that measures the total amount of Bitcoin traded on Bitwise 10 exchanges on a given day.

While the volume on the Bitwise 10 exchanges is certainly not all the activity there is in the entire BTC market, the reason they were chosen is that their data is the most reliable available on all of them. platforms, and their volumes still provide a decent approximation of what the trend looks like in the full industry.

When the value of the trading volume is high, it means that a large number of coins are currently moving on these exchanges. Such a trend suggests that traders are currently active in the Bitcoin market.

On the other hand, low values ​​imply that few investors are trading the cryptocurrency. This type of low activity may be a sign that general interest in the coin is low at the moment.

Now, here is a chart that shows the trend of Bitcoin’s 7-day average trade volume over the past year:

Looks like the metric’s 7-day average value hasn’t been too high for the past few days | Source: Arcane Research’s Ahead of the Curve – January 10

As the chart above shows, Bitcoin’s 7-day trading volume recently fell to low values ​​as the crypto was stuck in endless consolidation.

Over the past few days, however, the indicator has seen some growth as the latest rally in the price to $17,400 has slightly renewed trading interest in the coin.

Nevertheless, from the graph, it appears that these current values ​​are still significantly lower than the average observed in the second half of last year. This would suggest that there is not enough activity in the market yet.

Usually, any rise in price requires a large number of traders to be sustainable; there have been instances in the past where a sharp price move was not accompanied by an increase in trading activity, and so it didn’t take long before the move lost momentum.

There has not been a significant increase in trading volume with the current rally, but the fact that there has still been an increase may be a positive sign for this move.

The report notes that one consequence of recent low trading volumes has been that exchange revenues have been hit. This led to crypto exchange Coinbase cutting around 950 positions, as announced yesterday.

BTC price

As of this writing, Bitcoin is trading around $17,400, up 3% in the past week.

BTC seems to have seen a rally in recent days | Source: BTCUSD on TradingView

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

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