of bitcoin The bull run, which has seen prices rally by nearly 70% since the start of 2023, has been accompanied by a surge in Bitcoin trading volume.
Daily trading volume recently reached its highest level since the collapse of FTX to the tune of over $70 billion.
Bitcoin Last changing hands just above $28,000, up 40% from the prior monthly low of $20,000.
In fact, Bitcoin Trading volume appears to be in a definite uptrend, with the 21 and 50-day moving average volume recently rising above the 200DMA of volume, and closing at its highest level since mid-2021.
Increasing trading volume tends to occur during time periods of aggressive market movement, i.e. during phases of intense bull and bear markets.
Bitcoin bulls will be hoping that the market will continue past these phases.
On-chain metrics also trending positive
The improvement related to bitcoin trading activity on exchanges comes at a time when on-chain data suggests that activity on the bitcoin blockchain is also increasing.
As can be seen in the graph below presented by The Block, the number of daily transactions on the bitcoin blockchain has recently reached its highest level since the beginning of 2021.
Meanwhile, the growth in the number of active addresses on the bitcoin network hasn’t been impressive in recent weeks, but the metric is still near multi-month highs.
Elsewhere, the rate at which new addresses are interacting with the bitcoin network for the first time is also trending high.
Addresses with non-zero balances also continued to grow rapidly. According to data presented by Glassnode, this metric has recently crossed 45 million for the first time.
Financial Crisis Worries Could Send Bitcoin Even Higher
In-spite of this rising technical signal While the bitcoin market is heating up in the short term, analysts believe that financial crisis looms could still send the world’s largest cryptocurrency by market capitalization down.
Bitcoin has been acting as a safe haven in recent weeks, rallying alongside gold as investors turn to currency alternatives that are not vulnerable to collapse of the traditional financial system.
If US Federal Reserve Chairman Jerome Powell fails to communicate his outlook for policy tightening after Wednesday’s policy announcement, it could fuel worries of a crisis.
According to Mike McGlone, senior macro strategist at Bloomberg, bitcoin’s recent strong price versus gold could be a sign that a new “supercycle” is setting in.
McGlone also said that the recent relative strength versus most assets could be a sign that bitcoin is transitioning to trade like gold and US Treasuries (i.e. a safe haven) rather than a risk-on asset.