Skip to content

Bitcoin trading volume hits 3-month high as investors abandon fiat

Bitcoin trading volume hits 3-month high as investors abandon fiat

Despite Bitcoin (BTC) recording significant corrections in 2022, the asset is witnessing increased investor activity. In this line, Bitcoin’s trading volume has risen steadily as the flagship cryptocurrency appears to meet its expectations of being a safe haven asset in the high inflationary environment. 

In particular, as of September 29, Bitcoin’s trading volume hit its highest level since mid-June to stand at $42.68 billion, on-chain data by Santiment indicates.

Bitcoin trading volume chart. Source: Santiment

Trading volume fails to reflect on BTC’s price

Although Bitcoin trading volume is surging, the activity has failed to reflect on the asset’s price which continues to be outweighed by the prevailing macroeconomic factors like high inflation and increasing interest rates. 

At the same time, most global fiat currencies are stumbling against a rampant United States dollar. Therefore, investors appear to be in a rush to dump the fiat currency with Bitcoin viewed as a hedge. Also, a section of investors are attempting to profit from arbitrage. 

Finbold earlier reported that investors in the United Kingdom and the European Union are selling their pounds (GBP) and euros (EUR) at record numbers to purchase Bitcoin. This is after the pound fell to historic lows triggering a record spike in the GBP/BTC trading volume

The Bitcoin trading volume partly complements the asset’s founding principles of thriving in high inflationary conditions. 

It is worth pointing out that if the volume was triggered due to the falling fiat currency values, then investors might not intend to hold the Bitcoin for long. In most cases, when fiat currencies underperform, investors usually turn to cryptocurrencies to buy dollarized assets and bypass the traditional banking system.

Bitcoin’s potential 

Furthermore, the explosion of Bitcoin trading volume against fiat currencies highlights the asset’s potential. Proponents have touted cryptocurrency as a better alternative to fiat currencies and gold due to the limited supply feature. 

In the meantime, Bitcoin is attempting to rally past the crucial $20,000 level. By press time, the cryptocurrency was valued at $19,300 with losses of about 1% in the last 24 hours.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.