Can New Bitcoin Rally Keep Up? Low Spot Volumes Say Otherwise

2022-3-31 22:00

On-chain data shows the Bitcoin spot trading volume hasn’t seen any significant rise recently, suggesting that the new rally may not last for too long.

Bitcoin Spot Trading Volume Observed Only A Slight Increase In The Past Week

As per the latest weekly report from Arcane Research, the BTC trading volume hasn’t risen much recently despite the new price rally.

The “daily trading volume” is an indicator that measures the total amount of Bitcoin changing hands on any given day.

When the value of the metric rises, it means more coins are being transacted on the chain now. Such a trend shows that the market is becoming more active as investors find more interest in the crypto.

On the other hand, declining values of the indicator suggest the Bitcoin network is becoming increasingly inactive. This kind of trend may imply that the general interest around the coin is going down.

Now, here is a chart that shows the trend in the Bitcoin Trading Volume over the past year:

The indicator's value doesn't look to be very high at the moment | Source: Arcane Research's The Weekly Update - Week 12, 2022

As you can see in the above graph, the Bitcoin trading volume has observed a small increase over the last seven days.

However, despite the increase, the value of the indicator is still quite low historically, suggesting that there aren’t many traders involved in the network right now.

Related Reading | Bitcoin MPI Spikes Up Suggesting Miners May Be Dumping

Usually, whenever the indicator has had low trading volumes, any large move in the price hasn’t lasted long. This is because of the fact that to sustain such moves, you need a lot of traders in the market.

During periods of low Bitcoin volumes, there aren’t many traders buying and selling. However, generally any big price move attracts more investors on its own, thus keeping itself fueled.

But since the latest rally that has taken the price of BTC above $47k has failed to attract any significant trading volume, it may not be able to keep going for long.

Related Reading | Another Crypto Scam: Former Party Producer Charged In $2.7 Million ‘Cash-To-Bitcoin’ Plot

That said, things could very well change in the coming days as they have already done a few times in the past, and high activity could once again return to the network.

BTC Price

At the time of writing, Bitcoin’s price floats around $47.2k, up 12% in the past week. The below chart shows the trend in the price of the coin over the last five days.

Looks like the price of the crypto has surged up over the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Volume Network (VOL) на Currencies.ru

$ 0.0001001 (-0.02%)
Объем 24H $0
Изменеия 24h: 0.10 %, 7d: 0.11 %
Cегодня L: $0.0001001 - H: $0.0001001
Капитализация $0 Rank 3549
Доступно / Всего 0 VOL

volume spot trading bitcoin new hasn rally

volume spot → Результатов: 126


Institutions’ Long Position on Bitcoin Doubles, BTC Futures Surpasses the Spot Volume by 18 Times

It’s been a month now that Bitcoin's price has been boring, hovering around $8,000. As such, volatility has dropped below 2%. However, volatility might make a comeback soon as the difference between the upper and lower band in the Trading Envelope indicator gets to its narrowest since mid-September. A similar narrowing was seen last month […]

2019-10-23 16:03


Наибольшую торговую активность обеспечивают биржи с низким показателем надежности

Доля бирж с высоким рейтингом надежности в совокупном объеме торгов криптовалютами за сентябрь составила всего 21%. In September, Lower-tier exchanges graded D-E still dominated — representing 71.

2019-10-22 20:48


Исследование: большую часть объемов обеспечивают биткоин-биржи с низким рейтингом надежности

Доля бирж с высоким рейтингом надежности в совокупном объеме торгов криптовалютами за сентябрь составила всего 21%. In September, Lower-tier exchanges graded D-E still dominated — representing 71.

2019-10-22 18:22


Объём торгов фьючерсами на Binance достиг 30519 BTC

За 24 часа объём торгов на фьючерсном рынке Binance превысил 30 500 BTC, номинальная стоимость в долларах США превысила $250 млн. 3 октября в Твиттере Binance опубликовала пост, в котором продемонстрировала впечатляющие результаты работы своего нового рынка фьючерсов.

2019-10-4 16:04


‘Insane’ Bitcoin Momentum Goes Overdrive as ‘Real Volume’ Hits $1.5 Billion

By CCN Markets: Bitcoin price has increased by 16 percent in the past week against the U. S. dollar following its initial breakout of the $10,000 mark on June 21. Luke Martin, a crypto trader, has said that the momentum of the dominant crypto asset is “insane,” indicating that minor corrections are being absorbed by the market at a fast pace and that the short term trend of the asset remains strong.

2019-6-24 09:40


Bitwise Submits Bitcoin Spot Market Report: The “Most Orderly & Efficient in the World” to SEC

Discrediting the popular misconception about Bitcoin spot market Bitcoin real spot market & substantially larger regulated bitcoin futures market Most important denomination in considering Bitcoin ETF: Regulated BTC futures volume accounts for 48% of the size of the spot market New research by Bitwise Asset Management titled “Economic and Non-Economic Trading In Bitcoin” is exploring […]

2019-5-25 19:23


Bitcoin Price Vulnerable Despite 2019 High, Traders Predict Plummet to $4,200

By CCN. com: In the past 24 hours, the bitcoin price spiked by nearly five percent from $5,580 to $5,880, surpassing $5,900 at the day’s peak, fueling the cryptocurrency market. The abrupt increase in the bitcoin price was supported by a noticeable increase in daily bitcoin spot volume estimated to be around $570 million as of May 7 by OnChainFX.

2019-5-7 13:45


Фото:

OKEx Trades Over $2.4Bn in Crypto Derivatives in 24 Hours, Tops BitMEX

OKEx just hit a record in crypto derivatives trading, knocking BitMEX off the top spot.   Turning Things Around OKEx ended last year amid a deluge of criticism from angry traders. Not only was the Asian-turned-Malta-based exchange called out for market manipulation when it forced the early settlement of BCH futures, without warning, right before the fork, but it was also slammed for falsifying trading volume.

2019-3-14 22:00


LocalBitcoins Data Shows 23 Countries Hit All-Time High in Bitcoin Trading Volume at the Bottom of Bear Market

According to the latest analysis of the LocalBitcoins (LBC), a peer-to-peer Bitcoin trading platform, Bitcoin utility around the world is hitting new heights. The author Matt Ahlborg details that exclusive fiat-to-crypto platform, LBC is a costly one as trades on this platform occurs “at an average of 4.5% over the USD equivalent spot price globally.” […]

2019-2-13 01:35


CME & Cboe Futures Trading Volume Nearly Reaches Parity with Five of the Biggest US Crypto Exchanges

According to the latest report by Trade Block, the trading volume of Cboe and CME bitcoin futures have “fallen since reaching the peak” in 2018 summer. However, what’s interesting is, the future trading volume of CME and Cboe reached “near parity” with total bitcoin spot trading volume across five of the largest US crypto exchanges. […]

2019-2-9 22:14