Data shows the Bitcoin trading volume now seems to be stabilizing at higher values than 2022’s average, but given the trend in the metric this year so far, it may not last too long.
The 7-day Average Bitcoin Trading Volume has Remained Around $5 Billillion
Arcane Research’s latest weekly report shows that the BTC trading volume has gained some ground recently, having remained at very low levels for most of 2022.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the blockchain on any given day.
The value of this currency is rising means that BTC networks are becoming more active, as more coins are moved on the chain.
The volume’s value decreases means that the network is becoming less active. This could be because some investors wait for crypto to hit certain price targets before making their moves. You could just be seeing a general lack interest in Bitcoin at this time.
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Here’s a chart showing the trends in BTC trading volume for the last year.
Source: Arcane Research's The Weekly Update - Week 9, 2022| Source: Arcane Research's The Weekly Update - Week 9, 2022
You can see that Bitcoin’s trading volume is around $5 Billion right now. This value has existed for quite some while.
It is significantly more than that which was available for most of 2022. The network is now more active.
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However, the metric did show similar spikes a few occasions in the past year but volumes always plummeted soon afterwards.
If Bitcoin isn’t able to make any significant price moves in the near term, the volume may once again sink down as traders start becoming disinterested, just like the instances earlier in 2022.
Low volume can be quite problematic for the crypto since any big price move requires a sufficiently large amount of traders participating, but as during periods of low volume the activity is low, a big price climb won’t sustain for too long.
BTC Prices
At the time of writing, Bitcoin’s price floats around $41.9k, down 4% in the past week. Below is a chart showing the change in Bitcoin’s price over the past five days.
Source: BitcoinUSD on TradingView| Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and Arcane Research charts