Crypto Exchange Volumes Increase as Bitcoin Hovers Near $30,000
Data from The Block data dashboard shows that crypto exchange volumes have been on the rise as bitcoin remains close to the $30,000 price threshold. The seven-day moving average for daily volumes across spot platforms in the industry has increased from $9.38 billion on September 26 to over $15 billion on October 20.
Historically Low Levels
Although there has been an increase in trading volumes, spot volumes for the asset class are still at historically low levels. In fact, cryptocurrency exchanges recorded only $311 billion in volume last month, marking the lowest level since 2020.
Increase in Volatility and Trading Volumes
The recent surge in trading volumes can be attributed to a price rally and increased volatility. This volatility was partially fueled by false rumors circulating about the Securities and Exchange Commission potentially approving a spot exchange-traded fund.
This increase in trading activity is particularly welcome for crypto exchanges, as they rely on higher volumes and volatility to generate higher profits. Coinbase, for example, has experienced a significant decline in trading volumes during the third quarter.
Not Unique to Crypto Market
It’s worth noting that the calm trading activity is not exclusive to the crypto market. Even US equities have seen a decline in daily average trades between the first and third quarter, influenced by factors such as US Federal Reserve policy and the resumption of student loan payments.
Hot Take: Crypto Exchange Volumes Surge Amidst Price Rally
The recent increase in crypto exchange volumes comes as bitcoin hovers near the $30,000 price threshold. This surge in trading activity can be attributed to a price rally and increased volatility driven by false rumors about the approval of a spot exchange-traded fund. While spot volumes for the asset class are still at historically low levels, this uptick in trading volumes is a positive sign for crypto exchanges. However, it’s important to note that the calm trading activity is not unique to the crypto market, as even US equities have experienced a decline in trading. Overall, the increase in crypto exchange volumes reflects the ongoing interest and activity in the crypto space.
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