Bitcoin Trading Volume Surged To New Yearly Highs During Past Week
Data shows the Bitcoin spot trading volume spiked up and reached new yearly highs during the past week.
Bitcoin 7-Day Average Trading Volume Hits New Highs For 2022
As per the latest weekly report from Arcane Research, Binance alone accounted for 89% of the high volumes.
The “daily trading volume” here is an indicator that measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges each day.
When the value of the metric is low, it means investors aren’t moving around that many coins in spot markets right now. Such a trend can suggest the interest around the crypto is low at the moment as there isn’t much trading activity going on.
On the other hand, the indicator’s value being high implies the market is seeing large activity currently as investors are trading big amounts on exchanges.
Now, here is a chart that shows the trend in the Bitcoin 7-day average daily trading volume over the past year:
As you can see in the above graph, the Bitcoin daily trading volume has spiked up during the last week or so.
Usually, high volumes occur alongside sharp moves in the price of the crypto. In the current case, the surge in trading activity was triggered by the crash due to crypto exchange FTX’s collapse. Following this spike, the indicator has now reached new heights for the year.
The chart displays the volumes for Binance and that for the rest of the exchanges separately; it’s because the crypto exchange started observing large amounts of wash trading after the platform removed the fee on BTC-stablecoin trading pairs.
It looks like most of the recent surge occurred only on Binance as the daily volume on the exchange reached $25 billion last Tuesday.
In the last seven days, around 89% of the total Bitcoin trading volumes on the Bitwise 10 exchanges came from Binance alone.
The report notes that such a consolidation of market activity on the exchange is concerning. “The 14-year-old history of bitcoin has not been kind towards extreme concentration in one marketplace,” comments Arcane Research.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.7k, down 4% in the last week. Over the past month, the crypto has lost 12% in value.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Hououin Kyouma, @Khareem Sudlow