Bitcoin retail interest returns, pushing BTC spot trading volume to 12-month high
Zoltan Vardai8 hours agoBitcoin retail interest returns, pushing BTC spot trading volume to 12-month highAlong with the growing retail interest, Bitcoin transfers to Coinbase have also started to surge. Are investors preparing to take profit?2011 Total views14 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksBitcoin (BTC) spot trading volume across centralized exchanges recorded its best day over the past year on March 5, with a combined daily volume of $46.26 billion, suggesting that more retail investors have started buying the world’s first cryptocurrency.Bitcoin trading volume across large CEXs. Source:KaikoBitcoin spot trading volume reached a yearly high
Following the yearly high, Bitcoin spot trading volume cooled to $31.32 billion on March 6, with Binance accounting for over 74%, or $18 billion, of the daily volume.
“People are buying Bitcoin. Spot trading volume has shot up almost 680% since the start of the year,” according to a March 6 X post by Mallika Kollar, quantitative research associate at Bitwise.Source: @mallikakolar
The year-to-date record trading volume coincided with a new all-time high in daily inflows for the spot Bitcoin exchange-traded funds (ETFs). The 10 U.S. spot Bitcoin ETFs set a record $10 billion in daily trading volume on March 5, beating last week’s $7.7 billion record.
“These are bananas numbers for ETFs under [two months] old,” Bloomberg ETF analyst Eric Balchunas said in a March 5 X post reporting the figures.
The soaring volumes across exchanges and ETFs propelled Bitcoin price to a new all-time high of above $69,200 on March 5. Bitcoin was up 1.09% in the 24 hours leading up to 1:30 pm UTC to change hands at $66,878, according to CoinMarketCap data.BTC/USD, 7-day chart, Source:CoinMarketCap
Retail interest appears to also be surging in South Korea, where Bitcoin went as high as $72,000 (based on the KRW/USD exchange rate) on March 5 on Upbit, the country’s biggest cryptocurrency exchange. This price difference is known as the Kimchi premium or Korea premium index — and it has been in an uptrend along with BTC price since early February.
Related:Bitcoin just had its best day ever — Is $100K BTC price programmed?
Since South Korea has no approved spot Bitcoin ETFs, retail spot buying is likely the main driver of the premium. Number of BTC addresses worth at least $10 at new highs
The number of addresses with at least $10 worth of Bitcoin has reached a new all-time high of over 35 million on March 6, according to Coinglass data, suggesting increased retail investor participation.Number of Bitcoin addresses worth $10 or over. Source:Glassnode
Mirroring the growing retail interest, online search trends for Bitcoin remain elevated. Searches worldwide averaged 80 between March 3 and March 9, up over 31% from 61 a year ago when the price was around $20,000, according to Google Trends data.Bitcoin searches, 12-month chart. Source: GoogleTrendsNumber of Bitcoin transfers to Coinbase. Source:Glassnode
Additionally, the number of Bitcoin transfers to Coinbase, the largest U.S.-based exchange, is rising toward its 2022 highs, as shown in the chart above.
This suggests that investors may be positioning themselves for profit-taking at the current price levels. However, previous spikes have not only occurred during bull market tops, as seen in 2016–2017.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Markets# Cryptocurrency Exchange# Halving# Bitcoin Halving# Market ReleaseAdd reactionAdd reaction