Bitcoin (BTC) trading volume reached unprecedented levels in the first eight months of 2024, surpassing the previous records set during the 2021 bull market. According to data from Paris-based analytics firm Kaiko, the cumulative notional trading volume representing the dollar value of BTC bought and sold on centralized exchanges totaled a staggering $2.874 trillion between January and August.
This figure marks a nearly 20% increase over the $2.424 trillion recorded during the same period in 2021, making it the highest bitcoin trading volume since 2012.
“The rise in crypto volatility has been accompanied by increased market participation, at least in the bitcoin market,” Kaiko stated in its weekly report, attributing the surge to the growing activity on centralized exchanges.
Bitcoin’s increased volatility has played a significant role in this rise. According to TradingView data, the cryptocurrency’s 10-day realized volatility surged to an annualized 100% in April, fueled by strong inflows into U.S.-listed spot exchange-traded funds (ETFs) and expectations of Federal Reserve rate cuts. These factors pushed Bitcoin’s price to new all-time highs, surpassing $70,000.
Volatility spiked again in early August due to concerns surrounding the U.S. economy and the unwinding of the yen carry trade, which destabilized risk assets, including cryptocurrencies.
The sustained increase in trading volume and volatility suggests a growing engagement in the bitcoin market, reflecting both heightened interest and uncertainty as the cryptocurrency continues to evolve in the global financial landscape.
