Bitcoin Trading Volume Up After Rally, But Remains Lower Than Average

• According to the latest weekly report from Arcane Research, the trading volume for Bitcoin has seen a slight increase following the recent rally, but it is still lower than the average for the 2nd half of 2022.
• The trading volume is an indicator that measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges on any given day.
• A high trading volume suggests traders are active in the Bitcoin market currently, whereas low values imply not many investors are trading the cryptocurrency.

The Bitcoin market has seen a surge of activity in recent weeks, with the value of the cryptocurrency continuing to climb. As a result, the trading volume – an indicator that measures the total amount of Bitcoin being transacted on the Bitwise 10 exchanges on any given day – has also seen a slight uptick. According to the latest weekly report from Arcane Research, the trading volume is still lower than the average for the 2nd half of 2022, but it has gone up a bit.

The trading volume is an important metric in the Bitcoin market, as it can provide insight into the overall market sentiment. A high trading volume suggests that traders are active in the market and are confident in the direction of the cryptocurrency, whereas low values imply that not many investors are trading the currency. This kind of low activity can be a sign that the general interest in the coin is low at the moment.

The chart below shows the trend in the 7-day average Bitcoin trading volume over the past year. As can be seen, the 7-day average value of the metric hasn’t been too high in recent days:

Chart showing the trend in the 7-day average Bitcoin trading volume | Source: Arcane Research’s Ahead of the Curve – January 10

While the trading volume on the Bitwise 10 exchanges is certainly not all the activity there is in the entire BTC market, the reason why they have been chosen is that their data is the most reliable available out of all the platforms, and their volumes still provide a decent approximation for what the trend in the complete sector looks like.

Overall, the Bitcoin market has seen a slight increase in trading volume over the past week, but it is still significantly lower than the average for the 2nd half of 2022. This suggests that, while there is still some interest in the cryptocurrency, it is still not as high as it was during the peak of the rally. It will be interesting to see if the trading volume continues to increase in the coming weeks, and if it does, it could be a sign of increased investor confidence in the cryptocurrency.