Data shows Bitcoin spot trading volume has surged up as BTC has begun to target a new all-time high (ATH) price soon.
Bitcoin Spot Trading Volume Keeps Increasing
As per the latest report from Arcane Research, BTC spot trading volume continues to surge up as the coin heads towards a new ATH.
The “trading volume” is a Bitcoin indicator that measures the total number of coins transacted on the blockchain in a day.
Here is a chart showing the trend in the value of this indicator for BTC over the past year:
Bitcoin's trading volume has been surging up recently | Source: The Arcane Research Weekly Update - Week 41
As the above graph shows, the indicator’s value has been trending upwards this month as BTC’s price starts making big movements.
Related Reading | 99% Bitcoin Supply In Profit Again, Here’s What Happened Next Historically
The 7-day average trading volume now sits at around $7 billion. 15th October saw even higher values of around $12 billion, the highest Bitcoin has seen since almost six months.
During the summer, the metric had sharply dropped off and made yearly lows. Trading activity briefly returned, but it soon again dropped off.
When the indicator’s value goes up, it means there is overall more interest in trading Bitcoin. Low values can suggest few investors want to move their coins around and these periods usually have either sideways or downwards price movement.
Related Reading | Insider Information Claims Bitcoin Futures ETF Will See No Opposition At Deadline
High activity makes the crypto more volatile and it’s only during these situations that the coin can keep up big price moves. For example, the above mentioned $12 billion volume that occurred a few days ago accompanied a 7.6% jump in the price.
Also, there have been instances in the past where the trading volume didn’t back price movements up, and these attempts ended up dying off soon enough.
This current fresh upwards trend shows the market has again become interested in trading Bitcoin. This is good news for the price rally as such trading activity can help the coin from losing momentum.
BTC Price
At the time of writing, Bitcoin’s price floats around $62.8k, up 10% in the last seven days. Over the last month, the crypto has gained 32% in value.
The below chart shows the trend in the price of BTC over the last five days:
BTC's price has moved mostly sideways during the last few days | Source: BTCUSD on TradingView
Bitcoin has showed sideways movement these past few days, but today is the ETF day so it’s likely the event will bring with it some fresh volatility. But it remains to be seen whether it will mean a big move up or another crash.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research