Bitcoin Volume & Volatility Suggest The Trend Is Waking Back Up

Data shows that after a while of inactivity, Discord’s trading volume and volatility trends seem to be waking back up.

Bitcoin Trading Volume Climbs Back Up

As per the latest Arcane Research report, the BTC trading volume has climbed back up in the last week as the 7-day average value floats above $6 billion now.

The daily “trading volume” is an indicator that measures the total amount of Bitcoin transacted on the blockchain on each day.

When the value of the metric moves up, it means the network is observing more activity as investors move their coins around.

On the other hand, low values imply that the network is relatively silent. This could be either because of a lack of interest in Bitcoin from investors or because of many holders sitting on their coins for the long term.

Here is a chart showing the trend in the BTC trading volume over the past year:

Bitcoin's daily trading volume surges up | Source: Arcane Research

As the above graph shows, BTC’s trading volume has been unusually low in the last three months. Previously, the indicator was showing quite high values as the bull run marched on and the ATH of $65k was reached.

This week, the metric saw 3 days with values above $8 billion, something that hasn’t happened since the last week of June.

Related Reading | Bitcoin Faces Unprecedented Crisis – $30,000 Is Not That Far Away

Since the daily volume chart above has been averaged over a week, the curve is only showing values above $6 billion and not the $8 billion true volume for those three days.

BTC Volatility Also Makes A Come Back

With the return of market activity, the volatility has also made a come back as the price of Bitcoin observes big moves in the last month.

The “volatility” of BTC is judged using the day-to-day returns of the crypto. The below chart shows the trend in this indicator over the past year:

BTC's 7-day volatility climbs up | Source: Arcane Research

As the above chart shows, in the same period that market activity slowed to a halt, the volatility also dropped quite a bit.

But this week has been different as the Bitcoin volatility has now made a return to levels not seen since the last week of June.

The reason behind the upticks in both the trading volume and volatility is the news regarding China’s crypto ban and the general economic stress due to Evergrande’s possible bankruptcy.

Twitter also added Bitcoin to its new tipping function, further helping to get the market activity and volatility going.

Related Reading | What Safe Haven? Bitcoin Behaves Like Risk-Asset During Evergrande Mayhem

At the time of writing, BTC’s price floats around $42k, down 2% in the last seven days. The below chart shows the trend in the price of the coin over the last five days:

BTC's price continues to show volatility | Source: BTCUSD on TradingVIew