Bitcoin Average Trade Size Jumps to Highest Level Since June After Grayscale Ruling

Bitcoin’s average trade size on most exchanges jumped to its highest point since June following a federal court ruling that the U.S. Securities and Exchange Commission (SEC) must review its rejection of Grayscale Investments' attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF on Tuesday.

According to data from Kaiko, the average trade size for bitcoin on crypto exchange Kraken increased to above $2,000 on Tuesday after the ruling, from around $850 the day prior. The last time bitcoin’s average trade size was higher than $2,168 was in June, said research firm Kaiko. The bitcoin average trade size also jumped on most other exchanges.

“This could suggest large traders are more active,” said Dessislava Aubert, an analyst at Kaiko.

As the market's confidence in a bitcoin spot ETF approval increased, the price of bitcoin climbed more than 7%, topping $28,000 at one point on Tuesday afternoon after the Grayscale news broke. The price has since pulled to just above $27,900.

“This is one of the largest hourly moves since Terra (the other one was the Aug 17 selloff). This is partly due to low liquidity,” said Aubert. “For now, overall volumes did not spike that much and are at their highest level since the Aug 17 selloff."

Bitcoin tumbled about 9% on August 17, briefly sinking below $25,000 on crypto exchange Binance. Cryptocurrency traders saw $1 billion of losses in liquidations the same day as digital-asset markets suffered one of their worst sell-offs of the year, and bitcoin's price fell to a two-month low.

Read more: Grayscale’s Victory Ignites a GBTC Trading Frenzy as Investors Bet on Narrowing Discount to Bitcoin Price