Bitcoin Trading Volume Has Now Stabilized At High Values, But For How Long?
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.
7-Day Average Bitcoin Trading Volume Has Remained Fixed Around $5 Billion Recently
According to the latest weekly report from Arcane Research, after staying at low values for much of 2022, the BTC trading volume looks to have found some ground at high values recently.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the blockchain on any given day.
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On the other hand, when the value of the volume decreases, it implies the network is turning less active. Such a trend may be there because investors are waiting for the crypto to reach certain price targets before they make their move. It may also just show a general lack of interest around Bitcoin at the moment.
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As you can see in the above graph, the Bitcoin trading volume seems to be around $5 billion right now, and has been around this value for some time now.
This value is significantly higher than what has been there for much of 2022. This means that the network has become more active recently.
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However, a few times in the year already the metric has shown similar surges, but the volume always died down soon after.
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 Price
At the time of writing, Bitcoin’s price floats around $41.9k, down 4% in the past week. The below chart shows the trend in the price of the coin over the last five days.
