March 27, 2024
Bitcoin's at $67,339, Retail Interest Fuels 12-Month Trading Peak
Bitcoin price today

Bitcoin’s at $67,339, Retail Interest Fuels 12-Month Trading Peak

Thursday, March 7, 2024: Bitcoin price is at $67,339, experienced a downturn in tickers. However, spot trading volume on centralized exchanges reached a notable milestone on March 5, recording its highest daily volume in the past year at $46.26 billion. This surge suggests an increasing interest from retail investors in the world’s first cryptocurrency.

Following this yearly peak, Bitcoin spot trading volume slightly decreased to $31.32 billion on March 6, with Binance dominating over 74%, equivalent to $18 billion, of the daily volume. Mallika Kollar, a quantitative research associate at Bitwise, noted, “People are buying Bitcoin. Spot trading volume has shot up almost 680% since the start of the year.”

The remarkable year-to-date trading volume coincided with a record-breaking day for spot Bitcoin exchange-traded funds (ETFs). The 10 U.S. spot Bitcoin ETFs achieved a historic $10 billion in daily trading volume on March 5, surpassing the previous week’s record of $7.7 billion. Bloomberg ETF analyst Eric Balchunas remarked, “These are bananas numbers for ETFs under [two months] old.”

The increased volumes on exchanges and ETFs propelled Bitcoin’s price to a new all-time high, surpassing $69,200 on March 5. As of 1:30 pm UTC on the same day, Bitcoin was up 1.09%, trading at $66,878 according to CoinMarketCap data.

Retail interest appears to be surging in South Korea, where Bitcoin reached as high as $72,000 on March 5 on Upbit, the country’s largest cryptocurrency exchange. The price variance, identified as the Kimchi premium or Korea premium index, has been rising in tandem with BTC since early February.

As South Korea lacks approved spot Bitcoin ETFs, retail spot buying is likely the primary driver of the premium. The number of addresses holding at least $10 worth of Bitcoin reached a new all-time high of over 35 million on March 6, indicating increased retail investor participation, according to Coinglass data.

Reflecting the growing retail interest, online search trends for Bitcoin remain elevated. Global searches averaged 80 between March 3 and March 9, up over 31% from 61 a year ago when the price was around $20,000, based on Google Trends data.

Furthermore, the number of Bitcoin transfers to Coinbase, the largest U.S.-based exchange, is approaching its 2022 highs. This indicates that investors might be strategically preparing for profit-taking at the existing price levels. However, historical data indicates that such spikes have not only occurred during bull market tops, as seen in 2016–2017.

Image by fabrikasimf on Freepik

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