Bitcoin spot and derivative trading volumes have been surging in the past few weeks in tandem with the cryptocurrency’s aggressive rally from early monthly lows under $20,000.
That suggests there is a lot of conviction behind the recent move higher, which saw Bitcoin eclipse $28,000 this week for the first time in nine months.
At current levels in the mid-$28,000s, Bitcoin is up nearly 4% in the last 24 hours, 13.5% in the last seven days and 19% in the last 30 days according to CoinGecko.
Bitcoin’s price has been supporting since mid-March amid concerns about US (and global) financial stability following a series of highly publicized bank failures, as well as thanks to an associated dovish pivot from the US Federal Reserve.
Despite still raising interest rates by another 25 bps this week given inflation is still raging well above target, the US central bank softened its tone on the outlook for further interest rate hikes, and markets are betting aggressively on the start of a rate-cutting cycle starting in the second half of 2022.
The latest surge in Bitcoin trading volumes adds to the reasons to think that a new Bitcoin bull market has arrived.
According to data presented by The Block, the 7-day Moving Average of Bitcoin trading volumes on exchanges rose to around $24 billion earlier this week, its highest level since mid-2021.
Meanwhile, despite March not being over yet, the volume of Bitcoin futures traded across exchanges this month so far is already at its highest since last September at close to $1 trillion.
It will probably end the month at its highest since last July or June. Bitcoin futures are a derivative of the underlying spot Bitcoin asset.
Futures represent a guarantee that an asset will be delivered at some time
Read more on cryptonews.com