Spot trade volume after Bitcoin ETFs is similar to peak of 20-21 bull market

The volume of spot trading showed a very significant increase after the start of trading in spot Bitcoin exchange-traded funds (ETFs), bearing a great resemblance to the peak of the bull market recorded between the years 2020 and 2021, according to with an analysis shared on April 10 by cryptocurrency analytics platform Glassnode.

Since ETF trading began on January 11, 2024, markets for the largest cryptocurrency, Bitcoin (BTC), have seen a notable increase in its spot trading volume.

According to the analysis, when Bitcoin reached an all-time high of $73,000 last month, daily volumes saw a peak of approximately $14.1 billion. The highest price paid for Bitcoin (BTC) is $73,737.94, recorded on March 14. Currently, BTC is 5.63% away from reaching its all-time high.

“Bitcoin markets have seen an increase in spot trading volume since the US spot ETFs were launched in early January 2024. When the market reached the ATH of $73K in mid-March, daily volumes registered a peak of approximately US$14.1 billion. This magnitude of spot trading volume is equivalent to the height of the 2020-2021 bull market, although it has started to cool in recent weeks, currently at $7 billion/day,” he noted.

#Bitcoin markets have seen a surge in spot trade volume since the US Spot ETFs went live in early January 2024. As the market reached the $73k ATH in mid-March, daily volumes recorded a peak of ~$14.1B.

This magnitude of spot trade volume is equivalent to the height of the… pic.twitter.com/ZRarR9fli8

— glassnode (@glassnode) April 10, 2024

What is a Bitcoin ETF? Dynamic investors looking to diversify their portfolios with lower costs and tax advantages often opt for Exchange Traded Funds (ETF). An ETF is a collection of assets, the shares of which are traded on stock markets. They offer a combination of the benefits of mutual funds, stocks and bonds.

At the time of publication, the price of Bitcoin was quoted at US$70,002.62 with an increase of 1.5% in the last 24 hours.

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The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.