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Bitcoin News

CEXs saw record-breaking trading volume as Bitcoin touched ATH

bitcoin price

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On Mar. 5, Bitcoin reached the all-time high it posted in November 2021, breaking through $69,000 in the late afternoon UTC. However, Bitcoin’s stint at its ATH was extremely brief and was quickly followed by a sharp 14% correction that pushed its price down to $59,300. In the early morning of Mar. 6, BTC regained some of its lost footing but struggled to stabilize at $66,000.

Graph showing Bitcoin’s price from Mar. 2 to Mar. 6, 2024, 15:05 UTC (Source: CryptoSlate BTC)

The market’s intense price volatility on Tuesday, Mar. 5, translated to record-breaking trading volumes across centralized exchanges. With little data on the volume seen on OTC desks and a lag in data availability from spot ETFs, CEX volume serves as the best barometer for market activity when it comes to Bitcoin.

The analysis of Kaiko data by CryptoSlate revealed a 405% increase in trading volume in trading volume between Mar. 2 and Mar. 5 — rising from $9.15 billion to $46.25 billion. This surge followed Bitcoin’s volatile price action, showing an aggressive reaction from traders to price fluctuations.

bitcoin trading volume CEXbitcoin trading volume CEX
Graph showing Bitcoin trading volume on centralized exchanges from Mar. 7, 2023, to Mar. 5, 2024 (Source: Kaiko)

The increase in trading volume was mirrored by a growth in trade count, which escalated from 10.12 million to 32.79 million over the same period. This shows increased engagement in the market and possibly a higher influx of retail and institutional investors.

The changes seen in the average trade size further corroborate this. Between Mar. 2 and Mar. 5, the average trade size increased by over 55%, jumping from $904 to $1,410, showing larger capital movements within the market as traders rushed to capitalize on the price volatility.

Analyzing the distribution of trading volume between US and global markets shows where most of this volume was coming from. The global market has consistently dominated Bitcoin trading volume, as previously covered by CryptoSlate. However, the US market’s share of the volume increased from 11.6% on Mar. 2 to 18.05% by Mar. 5, showing a significant increase in interest from US-based investors during this volatile period.

US vs global trading volume bitcoin CEXUS vs global trading volume bitcoin CEX
Graph showing the distribution of Bitcoin trading volume across global and US markets from Mar. 7, 2023, to Mar. 5, 2024 (Source: Kaiko)

Keeping up with the long-term trend, Binance commanded a significant majority of the global trading volume with 51.54%, while Coinbase led the US exchange market with a 57.89% share. Binance…

Click Here to Read the Full Original Article at Bitcoin (BTC) News | CryptoSlate…


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