Data shows the Bitcoin carnage has awakened the dead trading volume that had persisted since many months now.
Bitcoin Trading Volume Surges To Highest Value Since December
As per the latest weekly report from Arcane Research, the latest bloodbath in the crypto market has awakened BTC’s spot trading volume.
The “trading volume” is an indicator that measures the total amount of Bitcoin being moved on the chain on any given day.
When the value of this metric rises, it means the market is becoming more active as investors trade larger amounts of the crypto.
On the other hand, a downtrend in the indicator suggests the Bitcoin market activity is going down at the moment.
Historically, high trading volumes have made up for an ideal environment for pushing large price moves. This is because to sustain any such move, a large number of active traders are needed.
It’s also true that any significant price move attracts more traders in return as interest in Bitcoin goes up. Thus, it fuels itself to keep going. In cases when the volume hasn’t surged up in response to a move, the move hasn’t lasted for long before dying off.
Now, here is a chart that shows the trend in the BTC trading volume over the past year:
Looks like the value of the metric has surged up recently | Source: Arcane Research's The Weekly Update - Week 18
As you can see in the above graph, the Bitcoin trading volume had been very quite since a couple of months now.
However, this week the…