On Monday, the price of bitcoin reached $40,000 for the first time since mid-June, bringing traders back to the market. Daily trading volume for bitcoin reached $9.2 billion, the highest since June 22, according to a report by Arcane Research.
Trading volumes in bitcoin were previously trending downward, with some saying this was, in part, due to Wall Streeters “taking a break,” and heading out on summer vacations. Market action has been lackluster, with the price of bitcoin remaining stuck in a range between $30,000 and $40,000 since May.
The recent spike in trading volume could signal that when there’s a market move, interest and activity quickly return.
“The increasing volume amid bitcoin’s strength suggests that the strong recovery was supported by an influx of buyers, a healthy sign for the market,” said Arcane’s report.
It’s notable that trading volumes were trending downwards and saw four consecutive days below $3 billion before yesterday’s rebound, according to the report.
“Overall, the seven-day average trading volume remains substantially below its yearly average, and trading activity in bitcoin seems to be low so far this summer,” the Arcane analysts wrote.