Data shows that Bitcoin trading volume now appears to be stabilizing at higher values than the 2022 average, but given the trend in the stat this year so far, it may not be too long.
The 7-Day Average Bitcoin Trading Volume Has Been Fixed About $5 Billion Lately
According to the latest weekly report from mysterious investigationAfter staying low for much of 2022, BTC trading volume seems to have found some ground in high values recently.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin traded on the blockchain on a given day.
When the value of this stat increases, it means that the BTC network becomes more active as a greater number of coins are moved in the chain.
On the other hand, when the value of the volume decreases, it means that the network becomes less active. Such a trend can be there because investors wait for the crypto to reach certain price targets before making their move. It could also just be a general lack of interest around Bitcoin at the moment.
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Here is a chart showing the trend in BTC trading volume over the past year:
The indicator now appears to be at high readings for 2022 | Source: Arcane Research Weekly Update – Week 9, 2022
As you can see in the chart above, Bitcoin’s trading volume appears to be around $5 billion right now and has been around this value for a while now.
This value is significantly higher than what has been for much of 2022. This means that the network has become more active lately.
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However, a few times in the year, the stat has shown similar increases, but the volume always fell quickly after that.
If Bitcoin is unable to make significant price moves in the near term, volume could fall again as traders become disinterested, much like it did earlier in 2022.
Low volume can be quite problematic for the crypto as any major price movement requires a large enough number of traders participating, but because during low volume periods activity is low, a major price increase will not last too long.
BTC price
At the time of writing, Bitcoin’s price is hovering around $41.9k, down 4% from the past week. The chart below shows the trend in the price of the coin over the past five days.
It looks like Bitcoin’s price has been rising in the last 24 hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research