On-chain data shows the Bitcoin spot trading volume has remained elevated recently as the price of the crypto has observed deep discounts.
Bitcoin Spot Trading Volume Continues To Be Near Yearly Highs
According to the latest weekly report from Arcane Research, the current BTC spot volume is sitting at a value of $10.8 billion.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted in spot markets on any given day.
When the value of this metric is high, it means a large number of coins are being moved on spot exchanges right now. Such a trend suggests the market is active at the moment.
On the other hand, low values of the indicator suggest there isn’t much activity going on in the crypto right now. This kind of trend can imply the general interest around BTC is low among traders currently.
Now, here is a chart that shows the trend in the 7-day moving average Bitcoin trading volume over the past year:
The 7-day MA value of the metric seems to have been quite high in recent days | Source: Arcane Research's The Weekly Update - Week 37, 2022
As you can see in the above graph, the Bitcoin trading volume shot up to a yearly high of more than $12 billion just recently. This surge in the activity came because of the buildup towards the Ethereum merge.
Since then, the spot volumes have slumped down, but still remain near the peak as the indicator’s current value is just under $11 billion. The current price discounts in the crypto could be behind the latest sustained high values of the indicator.
The chart shows the metric’s values for Binance and those for the rest of the market separately. It’s apparent that Binance’s share of the total market volume has been very high for a while now.
The reason behind this is the fee removal on certain BTC-stablecoin trading pairs that the exchange employed some time ago.
BTC Price
At the time of writing, Bitcoin’s price floats around $19k, down 5% in the last seven days. Over the past month, the crypto has lost 12% in value.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the value of the crypto has been mostly moving sideways | Source: BTCUSD on TradingView
In the last few days, Bitcoin has been bouncing up and down around the $19k level. At the moment, it’s unclear when the crypto will escape from this consolidation.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research
Source: https://bitcoinist.com/bitcoin-spot-volume-elevated-price-deep-discounts/