Data shows that Bitcoin spot trading volume has increased recently, and has so far made a new high for the year 2022.
Bitcoin spot trading volume sees a sharp uptrend
According to the latest weekly report from Arcane Research, the 7-day average BTC volume has now reached a new yearly high of around $11.4 billion.
“Spot trading volume” is an indicator that measures the total amount of bitcoins being traded on spot exchanges on any given day.
When the value of this metric is high, it means that a large number of coins are seeing a movement in the spot markets. Such a trend shows that investors are active at the moment.
On the other hand, low values of the indicator suggest that there is not much activity happening on the exchanges right now. Such a trend could be a sign that investor interest around crypto is currently low.
Now, here is a chart that shows the trend in 7-day moving average bitcoin spot trading volume over the past year:
The 7-day MA value of the metric seems to have sharply risen up in recent days | Source: Arcane Research's The Weekly Update - Week 36, 2022
As you can see in the above graph, bitcoin spot trading volume has seen a sharp increase in its value recently.
The indicator is now valued at around $11.4 billion, which is seen not only in this part of 2022, but over the past twelve months in general.
The chart also shows individual contributions to the total daily spot volume coming from crypto exchange Binance.
The exchange seems to be seeing significantly higher volumes than the rest of the market as a whole, and has been doing so for some time. The reason behind this is the removal of fees on some BTC trading pairs that the platform employed some time back.
This encouraged traders who want to use high volume trading strategies to move to Binance, and hence the dominance of the exchange increased.
Following this latest surge, Binance accounts for almost 87% of the total daily bitcoin spot trading volume on the 7-day average.
btc price
At the time of writing, bitcoin price is floating around $20.3k, up 8% over the past seven days. In the past month, the crypto has lost 17% in value.
The chart below shows the coin’s price trend over the past five days.
Looks like the value of the crypto has crashed down over the last couple of days | Source: BTCUSD on TradingView
Featured image from André François McKenzie on Unsplash.com, charts from TradingView.com, Arcane Research