Bitcoin Trading Volumes Returned as Price Spiked Over $40K

Bitcoin Trading Volumes Returned as Price Spiked Over $40K

On Monday, the price of bitcoin reached $40,000 for the first time since Mid-June, bringing traders back to the market. Daily trading volume for bitcoin reached $9.2 billion, the highest since June 22, according to a report by Arcane Research.

Trading volumes in bitcoin were previously trending downward, with some saying this was, in part, due to Wall Streeters “taking a break,” and heading out on summer vacations. Market action has been lackluster, with the price of bitcoin remaining stuck in a range between $30,000 and $40,000 since May.

The recent spike in trading volume could signal that when there’s a market move, interest and activity quickly returns.

“The increasing volume amid bitcoin’s strength suggests that the strong recovery was supported by an influx of buyers, a healthy sign for the market,” said Arcane’s report.

It’s notable that trading volumes were trending downwards and saw four consecutive days below $3 billion before yesterday’s rebound, according to the report.

“Overall, the seven-day average trading volume remains substantially below its yearly average, and trading activity in bitcoin seems to be low so far this summer,” the Arcane analysts wrote.

Source