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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Bitcoin Trading Volume Has Now Stabilized At High Values, But For How Long?

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 2:18 pm
3 mins read

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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.

When the value of this metric goes up, it means the BTC network is becoming more active as a larger amount of coins are being moved around on the chain.

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.

Related Reading | Bitcoin Exchange Reserve Has Now Reached An Equilibrium After 2 Years Of Downtrend

Now, here is a chart that shows the trend in the BTC trading volume over the past year:

Bitcoin Trading Volume

The indicator seems to be at high values for 2022 right now | Source: Arcane Research's The Weekly Update - Week 9, 2022

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.

Related Reading | Why Is Bitcoin So Volatile, Anyway? Fidelity Digital Assets Explains

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.

Bitcoin Price Chart

Looks like the price of Bitcoin has surged up over the past 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

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