Data shows bitcoin spot trading volume has recently increased and is now approaching one-year highs as market volatility continues.
Bitcoin weekly trading volume surges to nearly $8 billion
According to the latest weekly report from Arcane Research, spot volumes have been rising steadily since the crash.
“Trading volume” is an indicator that measures the total amount of bitcoins that are exchanged hands on any given day.
When the value of this metric increases, it means that the number of coins participating in the transaction is increasing at the moment.
Such a trend suggests that the BTC network is becoming more active as investors are carrying a larger number of coins right now.
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On the other hand, declining volumes may indicate that general investor interest in crypto may be waning as network activity is declining.
Now, here is a chart that shows the trend in bitcoin trading volume over the past year:
The value of the metric seems to have shot up in recent days | Source: Arcane Research's The Weekly Update - Week 24, 2022
As you can see in the above graph, bitcoin trading volume has been increasing recently and is now priced higher.
The current 7-day average value of the indicator is around $7.8 billion, close to the yearly highs set during the LUNA crash last month.
Aside from that spike and current, spot volumes were pretty much dead over the past 12 months, compared to early 2021 values.
The reason behind the current high trading volume is that bitcoin has been seeing some very sharp volatility lately.
The chart below shows the volatility trend of BTC over the past year and a half.
Looks like the BTC market has faced high volatility recently | Source: Arcane Research's The Weekly Update - Week 24, 2022
From the graph, it is clear that the 7-day average value of Bitcoin’s volatility is currently the highest since May of 2021.
Times with high volatility usually attract a large number of traders to the market and prompt those already involved to make some moves, thus resulting in higher volumes.
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At the time of writing, the price of bitcoin is down 3% over the past seven days, around $20.6k. In the past month, the value of crypto has fallen by 32%.
The chart below shows the coin’s price trend over the past five days.
The value of BTC has been moving sideways over the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research