Bitcoin trading volume hits $2.87 trillion in early 2024
Bitcoin (CRYPTO:BTC) trading volume has surged in 2024, reaching $2.87 trillion from January to August, according to data from Kaiko, a Paris-based analytics firm.
This represents a notable 20% increase compared to the $2.42 trillion recorded during the same period in 2021.
The rise in trading volume points to increased activity and participation in the market, driven by economic uncertainty and fluctuating conditions.
Kaiko’s report highlights that the uptick in Bitcoin trading volume is closely tied to increased volatility in the crypto market.
"The rise in crypto volatility has been accompanied by increased market participation, at least in the bitcoin market," the report noted.
Throughout the year, Bitcoin has seen substantial price swings due to a combination of macroeconomic factors and significant inflows into U.S.-listed spot exchange-traded funds (ETFs).
These developments have resulted in more trading activity on centralized exchanges.
Further insights from TradingView show that Bitcoin's 10-day realized volatility — which measures how much the price has been fluctuating — reached an annualized 100% in April.
This spike came as investors anticipated potential interest rate cuts from the U.S. Federal Reserve, leading to an influx of funds into crypto-related ETFs.
During this time, Bitcoin’s price surged past $70,000, setting new records.
In August, volatility resurfaced as concerns about the U.S. economy and the unwinding of the yen carry trade led to instability in risk assets, including cryptocurrencies.
These market tensions prompted traders to increase their activity, pushing Bitcoin trading volumes even further.
At press time, the Bitcoin (BTC) price was $56,740.57.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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