Bitcoin Massacre Awakens Sleepy Giant As Spot Volumes Grow


Data shows that Bitcoin’s carnage has awakened the dead trading volume that has persisted for many months.

Bitcoin trading volume soars to highest value since December

According to the latest weekly report from mysterious investigationThe latest crypto market massacre has awakened BTC’s spot trading volume.

The “trade volume” is an indicator that measures the total amount of Bitcoin that moves in the chain on a given day.

When the value of this metric rises, it means that the market becomes more active as investors trade larger amounts of crypto.

On the other hand, a downward trend in the indicator suggests that activity in the Bitcoin market is falling right now.

Historically, high trading volumes have provided an ideal environment to drive large price movements. This is because to support such a move, a large number of active traders is needed.

Related literature | Bitcoin Market Cap Drops $315 Billion As Crypto Adoption Isn’t Realized By 2022

It is also true that any significant price movement in return attracts more traders as interest in Bitcoin rises. That’s how it feeds itself to keep going. In cases where the volume has not increased in response to a movement, the movement did not last long before dying.

Here is a chart showing the trend in BTC trading volume over the past year:

It seems that the value of the stat has increased recently | Source: Arcane Research Weekly Update – Week 18

As you can see in the chart above, Bitcoin trading volume has been very quiet for a few months now.

However, this week the value of the indicator has risen sharply as the market has been panicked by the crypto price crash.

Related literature | Extreme fear back in the picture: is it time to buy Bitcoin?

On Monday, the daily trading volume was about $13 billion in Bitcoin traveling on the network. This is the highest value of the statistic since December 4 last year.

It now remains to be seen whether the fresh spot volumes will last into next week, or whether the market will go back to sleep once the sell-off is over.

BTC price

The price of Bitcoin has now fallen below the lows formed in the summer of 2021. At the time of writing, the coin is trading around $28.1k, down 28% in the past seven days. In the past month, the crypto lost 29% in value.

The chart below shows the trend in the price of the coin over the past five days.

The value of the crypto seems to have fallen in recent days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

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