Data shows the Bitcoin spot trading volumes have hit a new yearly high in the past week as the price of the cryptocurrency has taken a volatile turn.
Bitcoin Spot Trading Volume Has Hit A New High For 2023
As per the latest weekly report from Arcane Research, the 7-day average daily trading volume has hit the $13 billion mark recently. The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges.
The Bitwise 10 exchanges have been chosen for this calculation as these platforms are known to provide the most reliable data in the market. Obviously, these aren’t all the exchanges there are in the sector, but their data still provides a reliable approximation for the trend in the entire spot market.
When the value of the indicator is high, it means a large number of coins are seeing some movement on the spot market right now. Such a trend suggests traders are active currently.
On the other hand, low values imply the BTC market isn’t seeing much activity at the moment. This kind of trend can be a sign that the general interest in the asset is low currently.
Now, here is a chart that shows the trend in the 7-day average daily Bitcoin trading volume over the last year:
As shown in the above graph, the 7-day average daily Bitcoin trading volume has observed a sharp rise over the last week or so. With this latest burst of market activity, the metric’s value has hit the $13 billion mark, which is the highest observed this year so far.
From the chart, it’s visible that this level of the spot volume also happens to be the second highest since February 2022, with only the post-FTX panic trading days of November registering higher values.
An extreme majority of the volumes are still concentrated on Binance, however, continuing the trend seen since the fee removal on the platform. “Volumes on the other spot exchanges sit below the peaks from January at $680m, as Binance’s volume still represents 95% of the daily BTC spot volume,” notes the report.
The reason behind the latest elevation in the indicator has been the sharp price action that the cryptocurrency has observed in the past week. Generally, investors are attracted to markets the most when they are showing volatile moves, which is why the trading volumes spike during such periods.
Below is a chart that displays how Bitcoin volatility, a metric that measures the deviation of returns from the norm, has changed during the recent price action.
Following the latest price swings, the Bitcoin 7-day volatility has increased to a value of about 3.9%, which is the highest level that the indicator has seen since November 2022.
BTC Price
At the time of writing, Bitcoin is trading around $24,100, up 9% in the last week.
