The Bitcoin spot trading volume is on the rise and it has reached a record high in 2022.
Bitcoin Spot Trading Volume Observes Sharp Uptrend
According to the most recent weekly report by Arcane Research the average 7-day BTC volume is now at a record $11.4 billion.
The “spot trading volume” is an indicator that measures the total amount of Bitcoin being transacted on spot exchanges on any given day.
If this metric has a high value, that means that many coins are watching the spot market movements. This trend indicates that investors are actively trading at the moment.
On the other hand, low values of the indicator suggest there isn’t much activity happening on exchanges right now. Such a trend could indicate that crypto investors are not interested at the moment.
Here’s a chart showing the trends in 7-day moving Average Bitcoin Spot Trading Volume over the last year.
The 7-day MA of this metric appears to have sharply increased in the recent days. Source: Arcane Research's The Weekly update - Week 36 2022| Source: Arcane Research's The Weekly Update - Week 36, 2022
The above graph shows that Bitcoin spot trading volume saw a sudden spike in value.
The indicator now has a value of $11.4 million, which is the most in 2022. It also represents the largest increase in total values over the past twelve months.
The chart also shows the individual contribution to the total daily spot volumes that’s coming from the crypto exchange Binance.
This exchange has seen significantly greater volume than any other market and this trend continues for quite some time. It is because certain BTC trading pairs were removed from the exchange’s fees a few years back.
This encouraged traders who want to use high volume trading strategies to go to Binance, and hence the exchange’s dominance jumped up.
After this latest surge, Binance’s share of the 7-day average total daily Bitcoin spot trading volume has become around 87%.
At the time of writing, Bitcoin’s price floats around $20.3k, up 8% in the last seven days. In the last month, crypto lost 17%.
Below chart displays the trends in the value of the coin during the last five working days.
It seems like crypto's value has fallen in the past few days. Source: TradingView, BTCUSD.| Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Arcane Research