Bitcoin Trading Volume Hits 3-month High
Bitcoin’s trading volume has continuously increased as the flagship cryptocurrency looks to be living up to its promises of being a safe haven asset in an inflationary climate.
According to on-chain statistics from Santiment, as of September 29, Bitcoin’s trade volume has reached its highest level since mid-June, standing at $42.68 billion.
Although Bitcoin trade volume is expanding, it has yet to reflect on the asset’s price, which remains overshadowed by current macroeconomic variables such as high inflation and rising interest rates.
At the same time, most global fiat currencies are collapsing against a raging US dollar. As a result, investors appear to be in a rush to dump fiat money, with Bitcoin serving as a hedge. A subset of investors is also aiming to benefit from arbitrage.
Bitcoin trade volume contributes to the asset’s core principles of flourishing in high inflationary environments.
It is worth noting that if the volume was prompted by declining fiat currency values, investors may not intend to keep Bitcoin for long. When fiat currencies underperform, most investors flock to cryptocurrencies to acquire dollarized assets and avoid the traditional banking system.
At the time of writing, BTC is trading at $19,204.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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