Bitcoin Trading Volume Recovers But Needs More Demand for New Highs
Bitcoin's spot trading volume has been slowly improving since hitting a low point in July, but analysts say much stronger demand is needed to push the cryptocurrency toward new record highs. Darkfost, a contributor at CryptoQuant, noted that Bitcoin's trading volume in July dropped to its lowest level since the previous bear market, reflecting weak market interest. Since then, major exchanges have seen a gradual recovery in spot trading volume, with Binance's volume rising from $42 billion in July to $50 billion in September. Bybit and Kraken also reported increases, with Bybit growing by 36% and Kraken doubling its volume.
Darkfost observed that this recovery aligns with Bitcoin's emerging upward momentum but warned that the current increase is not enough to confirm a sustained market rebound. He emphasized that Bitcoin would need to see a significant acceleration in spot volume and demand to attempt a new all-time high. The analysis comes as Bitcoin's price seeks to recover from its July low, with spot trading volume serving as a key indicator of market conviction.
Analysts view spot trading volume as a crucial metric for assessing the sustainability of price rallies. If volume recovery does not support price gains, the rebound could be limited, making future demand expansion a critical focus for market watchers.