Data shows the daily Bitcoin trading volume surged to its highest value since December 2021 on Monday, the day of the crash.
Bitcoin Trading Volume Spikes Up As Activity Increases In The Market
As per the latest weekly report from Arcane Research, the BTC spot volume increased to around $15.7 billion during the crash.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the network on any given day.
When the value of this metric increases, it means the number of coins exchanging hands on the chain is going up.
Such a trend shows that activity on the BTC network is rising up as investors are becoming more interested in trading the coin.
On the other hand, declining values of the trading volume suggest the Bitcoin network is becoming more inactive.
Related Reading | Bitcoin Hashrate Shoots Up To New All-Time High Amid Crash
This may be because of a general lack of interest around the crypto, or simply due to investors waiting for specific price levels before they make their moves.
Now, here is a chart that shows the trend in the Bitcoin trading volume over the past year:
The value of the indicator seems to have shot up in recent days | Source: Arcane Research's The Weekly Update - Week 23, 2022
As you can see in the above graph, the 7-day average daily Bitcoin trading volume has observed a rise in the last few days.
When the crypto’s price crashed down into the low 20ks on Monday, the single day value of the indicator was around $15.7 billion.
Related Reading | Bitcoin Holders To Remain Cautious As Correlation With Stocks Continues
This value is the highest the metric has seen since the December of last year. Prior to this, the activity on the network was pretty lackluster throughout most of 2022.
The report notes that as the market was now experiencing extreme fear for the 56th consecutive day, the chaos on Monday finally pushed investors to make some moves.
The flood of…
