Crypto Volume Breaks Bear Market Downtrend as Leverage Trading Surges

CryptoQuant has flagged a significant increase in trading volume across major cryptocurrency exchanges, which may signal a shift away from the bear market downtrend. According to data from CryptoQuant, spot trading volume broke out of its slump in August, reaching approximately $75 billion on August 21. This surge was accompanied by a price rally, with Bitcoin and other major coins experiencing a 25% increase.

The growth in spot volume was broad-based, with Gate up 667%, Coinbase up 429%, and OKX up 213%. Binance and smaller exchanges also saw significant increases of around 157-163%. CryptoQuant noted that the spike in volume occurred during a rally rather than a sell-off, which sets it apart from earlier volume spikes this year.

Leverage trading followed suit, with daily volume reaching about $336 billion on August 21. However, CryptoQuant warned that most of this growth came from traders covering shorts or being liquidated as prices climbed quickly. Despite this caveat, the increase in futures growth was still market-wide, with Binance and Bybit showing significant expansion.

CryptoQuant described the volume comeback as another sign of the end of the bear-market downtrend and a possible early indicator of a new bull phase across the crypto market.