Bitcoin's rise above $35,000 on October 24 and 25 took the cryptocurrency world by surprise as it signaled what could be the start of new bullish sentiment. Trading volumes for the world's largest cryptocurrency hit their highest levels since March, showing that interest in Bitcoin is booming once again.
The entire crypto market saw an influx of funds during the week, causing an increase in market capitalization. CoinGecko Data shows that the total market capitalization increased from $1.184 trillion on Sunday, October 22 to $1.312 trillion on Wednesday, October 25. Most of this inflow went to Bitcoin, whose cryptocurrency market share increased from 49.58% to 51.47% during this same time period.
Chart from CoinGecko
Daily Cryptocurrency Trading Volumes Hit 8-Month High
The recent boom in Bitcoin and cryptocurrency prices pushed daily Bitcoin trading volumes on cryptocurrency exchanges to their highest level since March. According According to The Block data dashboard, the seven-day moving average for spot trading volumes across multiple exchanges reached $24.12 billion on Thursday and $23.98 billion on Friday, respectively. In comparison, Bitcoin trading volume on exchanges was $11.02 billion on the first day of the month.
Chart from The Block
A similar metric from IntoTheBlock shows that Bitcoin transactions reached 1.4 million BTC as bulls looked to push Bitcoin to $35,000.
Chart from IntoTheBlock
Trading volumes are an important metric because higher volumes suggest greater interest and activity in a market. It means more people are actively buying and selling, creating more liquidity and volatility.
Whale activity also increased during this period, as indicated by chain trackers. Whale transaction tracker Whale Alerts has shown several BTC transactions worth millions of dollars to and from crypto exchanges.
๐จ ๐จ ๐จ 2,000 #BTC ($68,255,228) transferred from #Coinbase to unknown wallethttps://t.co/SdIJ87ZxNT
- Whale Alert (@whale_alert) October 26, 2023
๐จ ๐จ ๐จ 2,000 #BTC (68,560,116 USD) transferred from an unknown wallet to #Coinbasehttps://t.co/MJNn4HwswP
BTCUSD trading at $34,187 on the weekend chart: TradingView.com
- Whale Alert (@whale_alert) October 26, 2023
๐จ ๐จ ๐จ 1,499 #BTC ($51,276,429) transferred from #Binance to #Coinbenehttps://t.co/lVaDk8pYio
- Whale Alert (@whale_alert) October 27, 2023
Whats Next? More Bitcoin movement?
Since then, Bitcoin has formed a resistance level around $35,000 and is now trading in a range. At the time of writing, Bitcoin is trading at $34,150, up 14.47% over a 7-day period. While the price action appears to be moving sideways at the moment, there is still hope that the bulls will continue the momentum to push BTC above $35,000 in the new week.
Matt Hougan, CEO of crypto index fund manager Bitwise, has hinted at a greater influx of money in Bitcoin. Hougan makes this prediction on Bitcoin spot ETFs to project an inflow of around $50 billion within the first five years of their launch. Others Like Crypto Financial Services Platform Matrixport has made more optimistic claims.
Data of The mempool.space analytics platform has shown a sustained increase in activity on the BTC network. If the bulls continue to maintain strong momentum, we could see Bitcoin reach up to $45,000 in the first days of November.
Featured image from Shutterstock
