BlocksInform
The data show that Bitcoin spot trading volumes have increased significantly in parallel with the rally, a sign that this momentum could be sustainable.
Bitcoin 7-Day Average Trading Volume shows a rapidly increasing trend.
As per the latest weekly report from Arcane Research, the current trading volume highs haven’t been observed since the collapse of the crypto exchange FTX back in November of last year. The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges on any given day.
Whereas the metric can only take into account volumes of the 10 bitwise trades, the activity measured by it still gives a fair picture of the trend followed by the wider spot market.
As the value of this indicator increases, this means that a large number of parts are currently exchanged in the spot market. This suggests traders are currently active.
In addition, low values imply that the BTC market does not currently see much activity. This trend may mean that there is currently little public interest in cryptocurrency among investors.
Now here is a graph that shows the trend in the 7-day average volume of Bitcoin daily trade during the past year:
Looks like the value of the metric has shot up in recent days | Source: Arcane Research's Ahead of the Curve - January 17As displayed in the above graph, the Bitcoin daily trading volume has observed some rapid rise in the last week or so, as the BTC price has rallied. The seven-day average has now reached $10.8 billion, an all-time high since the FTX crash.
Overall, the increase in the value of the measure was 114% during the last week, which is very significant. From the graph, it is clear that this still represents the vast majority of activity, with a current trade volume of $9.8 billion. Crypto trading has begun to dominate the market in terms of back volume when the platform has eliminated fees on its Bitcoin trading pairs.
The remainder of the electoral districts are experiencing very low volumes recently, which has resulted in lower revenues for many of them and has led to new rounds of restructuring. The most notable example would be Coinbase, which had to cut 1,000 of its staff just a few days back.
As a result of the latest increase in market activity, however, the collective volume of non-binary exchanges has skyrocketed to approximately $1 billion, something they would probably find encouraging in the middle of that time.
The fact that these high commercial volumes came next to the Bitcoin rally might be a positive sign for it. As in previous years, all major price fluctuations have generally been accompanied by an increase in activity.
The reason behind this is that gatherings such as these require a lot of traders to maintain fuel. Given that the current rally has significant trade volumes, it may be viable for some time to come.
As of writing, Bitcoin is trading around $21,200, up 22 percent in the past week.
BTC seems to have stagnated over the last few days | Source: BTCUSD on TradingView
