By George Ward
The Bitcoin spot trading volume has remained at its highest in the past seven days, even as the asset price continues to move sideways. Bitcoin has seen a slight price surge in the first month of the year, spreading to other crypto assets.
Spot Trading Sees Stability
According to the weekly crypto market report from Arcane Research, the BTC spot trading volume usually drops when the price of Bitcoin hovers between its highs and lows. Arcane Research explained that the daily trading volume indicates the sum of BTC transacted on the Bitwise 10 exchanges in a single day.
However, the metric is only used to account for the trades on the Bitwise 10 exchange. This can serve as a decent estimate of the trend in the spot market.
The Bitwise 10 exchange data is a reliable estimate of the activities within this sector. The metric is considered accurate instead of assessing the complete market information.
Investors actively move the enormous volume of spot transactions when the metric’s value indicates a high. Hence, such a trend implies that traders are frequently making a move in the market.
Alternatively, its low values for Bitcoin spots suggest that there aren’t many traders making a move for the leading digital asset. As a result, a trend like this indicates little interest in investing in the asset.
The trend for Bitcoin’s 7-day daily trading volume shows that its trading volume was up three weeks ago, reaching over $10 billion as BTC experienced a sharp price movement. However, it is not unusual for the spot market to be highly active in moments of rapid price action.
A volatile market like Bitcoin excites many investors and pushes them into making some transactions. On the other hand, the rapid activities also ensure rallies like the current one keep traders busy due to the need for investors to sustain the move.
Previous Price Move
In the past, some of the sharp price moves did not come with any significant spike in BTC’s trading volume for Bitcoin for an extended period. Consequently, such a move naturally wades off after a brief activity, with Bitcoin’s price returning to its low volatility rate again.
Furthermore, the industry usually witnesses a drop in trading volume when the price of Bitcoin trades around a limited range and becomes less attractive to investors. Over the past three weeks, the spot market indicator has remained at the same high level as the asset’s value remains stuck in the consolidation zone since the previous week.
Meanwhile, the market activity has not seen any slowdown, which is s a positive sign for BTC’s uptrend push. At the time of writing, Bitcoin trades at $23,422, with a 1.5% drop in price in the past 24 hours, as revealed by CoinMarketCap data.