1. Home
  2. >>
  3. volume
  4. >>
  5. Bitcoin Spot Volume Soars, 7-Day Average Exceeds $10 Billion

Bitcoin Spot Volume Soars, 7-Day Average Exceeds $10 Billion

Bitcoin Spot Volume Soars, 7-Day Average Exceeds $10 Billion

Data shows that Bitcoin’s 7-day average spot trading volume has continued to rise this week as trading activity in the market ignites.

Bitcoin Market Sees Over $10 Billion in Volume Last Week

According to the latest weekly report from Arcane Research, BTC trading volume has increased again this week.

“Daily Trading Volume” is an indicator that measures the total amount of Bitcoin changing hands on a given day.

When the value of this metric decreases, it means that fewer coins are currently being exchanged on the chain.

The drop in volumes may suggest that interest in cryptocurrencies among investors is waning at the moment.

On the other hand, the increase in volume shows that the network becomes more active as more BTC watch the movement.

Historically, high volumes have provided an ideal environment for large Bitcoin price movements. In fact, to support such a move, you need a large number of active traders.

However, it is also true that large price movements also attract more traders, increasing volume and fuel.

Related Reading | Which mining company contributed the most to Bitcoin hashrate growth in 2022?

There have been cases in the past where a large price move has not been supported by an increase in volume. Such meetings never lasted long.

Now, here is a graph showing the trend of Bitcoin transaction volume over the last year:

The value of the indicator seems to have jumped recently | Source: Arcane Research Weekly Update – Week 19

As you can see from the chart above, Bitcoin trading volume has seen a strong increase in the last two weeks.

The recent carnage in the crypto market and the crash of LUNA are the main triggers for this sharp increase in spot volume.

In four of the last seven trading days, the value of the metric crossed the $10 billion mark. The weekend saw less activity, but volumes were still double the average for the weekend of last month.

Related Reading | 44 countries will meet with El Salvador to talk about Bitcoin, this is what we know

The 7-day average value of the indicator is now just below the high for the year seen in January.

It remains to be seen if this new activity can be sustained for the next few weeks or if volumes will recede, as they have for much of the year so far.

BTC price

At the time of writing, the price of Bitcoin hovers around $30,5000, down 4% from last week.

It seems that the price of the coin has been moving sideways recently | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research

Share this: