Data shows the daily Bitcoin trading volume surged to its highest value since December 2021 on Monday, the day of the crash.
Bitcoin Trading Volume Spikes Up As Activity Increases In The Market
As per the latest weekly report from Arcane Research, the BTC spot volume increased to around $15.7 billion during the crash.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the network on any given day.
When the value of this metric increases, it means the number of coins exchanging hands on the chain is going up.
Such a trend shows that activity on the BTC network is rising up as investors are becoming more interested in trading the coin.
On the other hand, declining values of the trading volume suggest the Bitcoin network is becoming more inactive.
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This may be because of a general lack of interest around the crypto, or simply due to investors waiting for specific price levels before they make their moves.
Now, here is a chart that shows the trend in the Bitcoin trading volume over the past year:
The value of the indicator seems to have shot up in recent days | Source: Arcane Research's The Weekly Update - Week 23, 2022
As you can see in the above graph, the 7-day average daily Bitcoin trading volume has observed a rise in the last few days.
When the crypto’s price crashed down into the low 20ks on Monday, the single day value of the indicator was around $15.7 billion.
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This value is the highest the metric has seen since the December of last year. Prior to this, the activity on the network was pretty lackluster throughout most of 2022.
The report notes that as the market was now experiencing extreme fear for the 56th consecutive day, the chaos on Monday finally pushed investors to make some moves.
The flood of sell orders by these Bitcoin holders lead to the price further crashing, and to the trading volume shooting up.
At the time of writing, Bitcoin’s price floats around $21.2k, down 30% in the last seven days. Over the past month, the crypto has lost 31% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the value of the coin is hanging around the $21k level | Source: BTCUSD on TradingView
During the crash, Bitcoin went down to as low as $20k, before recovering a bit to the current level. Since then, it has mostly been moving sideways over the last couple of days.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research