Bitcoin (BTC) spot trading volume on centralized exchanges reached its highest point in the past year on March 5, with a combined daily volume of $46.26 billion. This indicates that more retail investors are entering the market and purchasing the world’s first cryptocurrency.
After reaching this yearly high, Bitcoin spot trading volume dropped to $31.32 billion on March 6, with Binance accounting for over 74% of the daily volume. Mallika Kollar, a quantitative research associate at Bitwise, stated that spot trading volume has increased by almost 680% since the beginning of the year.
The record trading volume for the year coincided with a new all-time high in daily inflows for spot Bitcoin exchange-traded funds (ETFs). The 10 U.S. spot Bitcoin ETFs recorded a total trading volume of $10 billion on March 5, surpassing the previous record of $7.7 billion.
The high volumes across exchanges and ETFs pushed the price of Bitcoin to a new all-time high of over $69,200 on March 5. At 1:30 pm UTC on March 6, Bitcoin was trading at $66,878.
Retail interest in Bitcoin is also increasing in South Korea, where the price reached as high as $72,000 on March 5. This price difference, known as the Kimchi premium, has been on an upward trend since early February.
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 greater participation from retail investors.
Online search trends for Bitcoin have also remained high, with an average of 80 searches worldwide between March 3 and March 9. This is a 31% increase compared to a year ago when the price was around $20,000.
Furthermore, the number of Bitcoin transfers to Coinbase, the largest U.S.-based exchange, is approaching its 2022 highs. This suggests that investors may be preparing to take profits at the current price levels.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.