Bitcoin’s Daily Spot Trading Volume Surges to a Record-breaking $46 Billion

Bitcoin’s trading volume has surged to levels not seen since the peak days of 2021, reaching over $46 billion on various centralized exchanges (CEXs) on March 5th. The leading contributor to this monumental trading volume was Binance, the world’s largest cryptocurrency exchange, with $23.84 billion worth of Bitcoin trades. Other exchanges like Coinbase, Bybit, OKX, KuCoin, Upbit, and Kraken also played a significant role in contributing multi-billion dollar trading volumes.

This spike in trading activity was not limited to Bitcoin alone. Ethereum (ETH) also experienced a surge in spot trading volume, exceeding $20 billion on the same day. Binance once again dominated the Ethereum trading volume, accounting for half of the total.

The market dynamics surrounding Bitcoin have been characterized by volatility. After reaching a new all-time high of $69,324, the price corrected by 9.75% to $59,323 later in the day. Analysts view this correction as a necessary step for “healthy consolidation” before the next surge. The sudden drop raised questions about its cause, with speculations ranging from leverage to sudden sales by short-term buyers. Subsequently, over $1.17 billion worth of leveraged positions were closed across the cryptocurrency market, particularly Bitcoin long positions.

Attention has now turned to the future of Bitcoin, which is currently trading at $66,400. Experts anticipate more instability in the market due to various factors such as the release of economic data, upgrades to Ethereum’s blockchain, and major regulatory developments. Consequently, traders can expect increased trading activity and volatility in the bitcoin markets.

Tags: Bitcoin, Price Analysis