Bitcoin Trading Volume Hits Highest Level Since December 2021
The data shows that Bitcoin’s daily transaction volume reached its highest value since December 2021 on Monday, the day of the crash.
Bitcoin Trading Volume Rises as Market Activity Increases
According to the latest weekly report from Arcane Research, BTC spot volume rose to around $15.7 billion during the crash.
“Daily trading volume” is an indicator that measures the total number of Bitcoins traded on the network on a given day.
When the value of this metric increases, it means that the number of coins exchanged on the chain increases.
Such a trend shows that activity on the BTC network is increasing as investors become more interested in trading the coin.
On the other hand, falling transaction volume values suggest that the Bitcoin network is becoming increasingly inactive.
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This may be due to a general lack of interest in cryptocurrencies, or simply investors waiting for specific price levels before moving.
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 in recent days | Source: Arcane Research Weekly Update – Week 23, 2022
As you can see from the chart above, Bitcoin’s 7-day average daily trading volume has seen an increase in recent days.
When the price of cryptocurrencies fell to the low of 20k on Monday, the one-day value of the indicator was around $15.7 billion.
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This value is the highest the metric has seen since December of last year. Before that, activity on the network was pretty lackluster for most of 2022.
The report notes that, with the market now in extreme fear for the 56th day in a row, Monday’s chaos finally caused investors to take some action.
The rush of sell orders from these Bitcoin holders caused the price to fall further and the trading volume to increase.
At the time of writing this article, the price of Bitcoin hovers around $21,200, down 30% in the last seven days. Over the last month, the cryptocurrency has lost 31% in value.
The chart below shows the price trend of the coin in the last five days.
It seems that the value of the coin hovers around the $21,000 level | Source: BTCUSD on TradingView
During the decline, Bitcoin fell as low as $20,000, before recovering somewhat to the current level. Since then, it has mostly moved sideways in the last couple of days.
Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research
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