On-chain data shows the Bitcoin market observed its largest daily trading volume since 2021 last week following the start of the Russian invasion of Ukraine.
Bitcoin Trading Volume Surges To Highest Values For 2022
As per the latest weekly report from Arcane Research, the BTC market activity saw a revival due to the Russia-Ukraine war.
The “real BTC 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 is low, it means there hasn’t been much market activity recently as investors haven’t shifted many coins. This kind of trend can be a sign of waning interest in the crypto, or it may simply imply holders are waiting for specific price levels before they make their moves.
On the other hand, high trading volume values show that the Bitcoin blockchain is quite active at the moment as a lot of coins are getting involved in transactions.
Generally, high values of the indicator make for an ideal environment for big price rallies as a large amount of traders are required to sustain any such move.
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Conversely, any big price move naturally attracts more activity as traders rush to sell or buy as their targets are met. In cases where a rally isn’t backed by high trading volume, the move usually dies down before long.
Now, here is a chart that shows the trend in the Bitcoin trading volume over the past year:
Looks like the value of the indicator has risen up recently | Source: Arcane Research's The Weekly Update - Week 8, 2022
As you can see in the above graph, the Bitcoin trading volume has observed a sharp increase in the past week following the kickoff of the war.
Thursday saw the BTC network exceed $10 billion in volume, the highest value since 4th December 2021. Monday also registered quite the high values as the coin made recovery.
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Since the war is still raging on, the market activity may be expected to remain high. This would mean that high volatility will continue for Bitcoin in the near future.
At the time of writing, Bitcoin’s price floats around $44.2k, up 13% in the last seven days. Over the past month, the crypto has gained 14% in value.
The below chart shows the trend in the price of BTC over the last five days.
BTC's price seems to have sharply surged up over the past couple of days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research