Bitcoin trading volume surged to new annual highs over the past week

Data shows that Bitcoin spot trading volume increased and reached new annual highs over the past week.

Bitcoin 7-Day Average Trading Volume Hits New Highs for 2022

According to the latest weekly report from Arcane Research, Binance alone accounted for 89% of the high volumes.

The “daily trading volume” here is an indicator that measures the total amount of Bitcoin that is transacted on the Bitwise 10 exchanges each day.

When the value of the metric is low, it means that investors are not moving around as many coins in the spot markets right now. Such a trend could indicate that interest around the crypto is low at the moment as there is not much trading activity going on.

On the other hand, that the indicator’s value is high means that the market is seeing a lot of activity at the moment as investors trade large amounts on exchanges.

Now, here is a chart showing the trend in Bitcoin 7-day average daily trading volume over the past year:

The 7-day average value of the metric seems to have been pretty high in recent days | Source: Arcane Research's Ahead of the Curve - November 15

As you can see in the graph above, the daily trading volume for Bitcoin has increased over the past week or so.

Usually, high volumes occur along with sharp movements in the price of the crypto. In the current case, the surge in trading activity was triggered by the crash due to the collapse of the crypto exchange FTX. After this peak, the indicator has now reached new heights for the year.

The chart shows the volumes for Binance and that of the rest of the exchanges separately; that’s because the crypto exchange started observing large amounts of wash trading after the platform removed the fee on BTC-stablecoin trading pairs.

It appears that most of the recent increase occurred only on Binance, as daily volume on the exchange reached $25 billion last Tuesday.

Over the past seven days, around 89% of the total Bitcoin trading volumes on the Bitwise 10 exchanges came from Binance alone.

The report notes that such consolidation of market activity on the exchange is worrying. “The 14-year-old
the history of bitcoin has not been kind to extreme concentration in a marketplace, comments Arcane Research.

BTC price

At the time of writing, Bitcoin’s price is hovering around $16.7k, down 4% in the last week. Over the past month, the crypto has lost 12% in value.

Looks like the price of the coin has been showing an overall sideways trend recently | Source: BTCUSD on TradingView

Featured image from Vasilis Chatzopoulos on Unsplash.com, charts from TradingView.com, Arcane Research