More
    spot_img

    Bitcoin Spot Volume Remains High Despite the Price’s Significant Discounts

    On-chain data shows the Bitcoin spot trading volume has remained elevated recently as the price of the crypto has observed deep discounts.

    Bitcoin Spot Trading Volume Continues To Be Near Yearly Highs

    According to the latest weekly report from Arcane Research, the current BTC spot volume is sitting at a value of $10.8 billion.

    The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted in spot markets on any given day.

    When the value of this metric is high, it means a large number of coins are being moved on spot exchanges right now. Such a trend suggests the market is active at the moment.

    Related Reading: Banking Insider To Governments: You Should Want Bitcoin To Be Way More Private

    On the other hand, low values of the indicator suggest there isn’t much activity going on in the crypto right now. This kind of trend can imply the general interest around BTC is low among traders currently.

    Now, here is a chart that shows the trend in the 7-day moving average Bitcoin trading volume over the past year:

    Bitcoin Trading Volume

    As you can see in the above graph, the Bitcoin trading volume shot up to a yearly high of more than $12 billion just recently. This surge in the activity came because of the buildup towards the Ethereum merge.

    Since then, the spot volumes have slumped down, but still remain near the peak as the indicator’s current value is just under $11 billion. The current price discounts in the crypto could be behind the latest sustained high values of the indicator.

    Related Reading: Bitcoin Whales Buy $3.12 Billion In BTC In Last 24 Hours As Crypto Braced For Fed Hike

    The chart shows the metric’s values for Binance and those for the rest of the market separately. It’s apparent that Binance’s share of the total market volume has been very high for a while now.

    The reason behind this is the fee removal on certain BTC-stablecoin trading pairs that the exchange employed some time ago.

    BTC Price

    At the time of writing, Bitcoin’s price floats around $19k, down 5% in the last seven days. Over the past month, the crypto has lost 12% in value.

    The below chart shows the trend in the price of the coin over the last five days.

    Bitcoin Price Chart
    Looks like the value of the crypto has been mostly moving sideways | Source: BTCUSD on TradingView

    In the last few days, Bitcoin has been bouncing up and down around the $19k level. At the moment, it’s unclear when the crypto will escape from this consolidation.

    Latest stories

    - Advertisement - spot_img

    You might also like...