Bitcoin Market Sees Unprecedented Trading Volumes in 2024

Unprecedented Activity in the Bitcoin Market in 2024

The Bitcoin (BTC) market has witnessed remarkable trading activity in the first eight months of 2024, achieving a level of engagement that surpasses even the record notional trading volumes experienced during the bullish market of 2021. According to data from the Paris-based analytics firm Kaiko, the cumulative trading volume—representing the total dollar value of BTC transactions conducted on centralized exchanges—has reached an astounding $2.874 trillion within this timeframe.

This figure marks nearly a 20% increase compared to the trading volume of $2.424 trillion recorded in the same period back in 2021, making it the highest volume observed since 2012. Kaiko’s weekly report highlights that “the rise in crypto volatility has been accompanied by increased market participation, particularly in the Bitcoin sector.”

Data sourced from the charting platform TradingView indicates that Bitcoin’s 10-day realized or historical volatility soared to an annualized 100% in April, driven by significant inflows into U.S.-listed spot exchange-traded funds (ETFs) and rising expectations for potential Federal Reserve rate cuts. This surge in volatility helped propel the cryptocurrency’s price to unprecedented heights, exceeding $70,000.

Moreover, volatility surged once again at the beginning of last month, prompted by concerns regarding the U.S. economy and the unwinding of the yen carry trade, which further destabilized risk assets, including cryptocurrencies. This dynamic environment signifies a critical period for Bitcoin and the broader cryptocurrency market.