Bitcoin Trading Volume Hits $2.8 Trillion from January to August
The trading volume of Bitcoin (BTC) has surged to unprecedented levels in the first eight months of 2024, surpassing the previous peak seen during the 2021 bull market. Data from Paris-based provider Kaiko reveals that the cumulative dollar value of BTC traded on centralized exchanges reached $2.874 trillion in this period.
This figure represents a nearly 20% increase from the $2.424 billion volume recorded in the same timeframe in 2021, marking the highest volume since 2012. The rise in cryptocurrency volatility has driven greater market participation, particularly in the Bitcoin market, according to Kaiko’s weekly report discussing the record-breaking trading activity.
Bitcoin’s 10-day realized volatility spiked to an annualized 100% in April, driven by significant inflows into U.S.-listed spot exchange-traded funds and expectations of Federal Reserve rate cuts. These factors propelled the cryptocurrency’s price to new highs above $70,000.
However, volatility resurfaced early last month amid concerns about the U.S. economy and the unwinding of the yen carry trade, leading to instability across risk assets, including cryptocurrencies.
The surge in Bitcoin trading volume reflects increased market engagement amid ongoing uncertainty in both the crypto and macroeconomic landscapes. This heightened activity underscores the growing significance of digital assets in the broader financial ecosystem, with Bitcoin serving as a focal point for market participants navigating evolving market conditions.
As the cryptocurrency market continues to evolve and adapt to changing dynamics, the record-breaking trading volume of Bitcoin highlights the resilience and growing prominence of digital assets in the global financial landscape.
