Key Points
- Bitcoin's spot trading volume recorded a yearly high of $46.26 billion on March 5, indicating increased retail investor interest.
- The number of Bitcoin addresses with a minimum of $10 worth reached a new all-time high, further suggesting increased retail investor participation.
Bitcoin's spot trading volume on centralized exchanges hit a yearly high on March 5, with a combined daily volume of $46.26 billion. This suggests an influx of retail investors purchasing the first cryptocurrency, Bitcoin.
Spot Trading Volume High
The volume of Bitcoin spot trading cooled slightly to $31.32 billion the following day. Binance accounted for over 74% or $18 billion of this total.
According to Mallika Kollar, a quantitative research associate at Bitwise, spot trading volume has surged nearly 680% since the beginning of the year, indicating a significant uptick in Bitcoin purchases.
Record Trading Volumes and Prices
The record trading volume coincided with a new all-time high in daily inflows for Bitcoin exchange-traded funds (ETFs). The ten U.S. Bitcoin ETFs set a record of $10 billion in daily trading volume on March 5, surpassing the previous week's record of $7.7 billion.
These remarkable figures propelled Bitcoin's price to a new all-time high of over $69,200 on March 5. As of 1:30 pm (UTC), Bitcoin was trading at $66,878, reflecting a 1.09% increase in the preceding 24 hours.
In South Korea, Bitcoin's price surged to as high as $72,000 on Upbit, the country's largest cryptocurrency exchange. This price difference, known as the Kimchi Premium or Korea Premium Index, has been trending upward alongside Bitcoin's price since early February.
The number of Bitcoin addresses holding at least $10 worth of the cryptocurrency reached a new all-time high of over 35 million on March 6. This further indicates increased retail investor participation. Similarly, online search trends for Bitcoin remain high, with worldwide searches averaging 80 between March 3 and March 9, a 31% increase from the previous year.
The number of Bitcoin transfers to Coinbase, the largest U.S.-based exchange, is also on the rise, indicating that investors may be positioning themselves for profit-taking at the current price levels. However, it's important to note that previous spikes have not only occurred during bull market tops, as seen in 2016-17.
