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 return.
“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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.