According to data, the Bitcoin catastrophe has awakened the volume of dead trades that have been ongoing for months.
The Bitcoin trading volume has risen to its highest value since December
As per the latest weekly report from Arcane Research, the latest bloodbath in the crypto market has awakened BTC’s spot trading volume.
The “trading volume” is an indicator that measures the total amount of Bitcoin being moved on the chain on any given day.
If this indicator rises in value it indicates that investors are becoming more active with crypto.
The indicator’s downtrend indicates that Bitcoin market activity has slowed down.
The ideal conditions for large price swings have been created by high volumes of trading. It is important to maintain any move like this by having many active traders.
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It’s also true that any significant price move attracts more traders in return as interest in Bitcoin goes up. This is how it keeps itself going. In cases when the volume hasn’t surged up in response to a move, the move hasn’t lasted for long before dying off.
Below is a chart showing how the volume of BTC trades has changed over the past 12 months.
It looks like the value for the metric has risen recently. Source: Arcane Research's The Weekly update - Week 18.| Source: Arcane Research's The Weekly Update - Week 18
You can see that Bitcoin has traded very well in recent months, as you can see from the graph.
However, this week the indicator’s value has sharply spiked up as the market has panicked due to the crash in the crypto’s price.
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Monday saw $13 Billion in Bitcoin travel on the network, a record daily trading volume. This represents the highest value of the metric since December 4th, last year.
The market is still in limbo. It remains to be determined if there will be any fresh spot volume over the coming week or whether it will fall to sleep after the selloff.
BTC Prices
Bitcoin’s price has now crashed down to lesser values than the low formed in summer 2021. As of the writing time, bitcoin trades at around $28.1k. That’s 28% less than the previous seven days. In the last month, crypto’s value has fallen 29%.
Below is a chart showing the change in coin price over the past five days.
Cryptocurrency seems to be losing value in the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Unsplash.com's featured image. Charts by TradingView.com. Arcane Research:
