Q1 2022: Bitcoin trading volume drops to $3.6 trillion

Due to negative crypto market sentiment, Bitcoin trading volume in the first quarter of 2022 is two and a half times lower than in the first quarter of 2021.

Bitcoin continues to slowly recover from a crypto market downtrend that began in December 2021.

According to research by Be[In]Crypto, investor interest in the largest cryptocurrency by market capitalization dropped sharply in the first quarter of 2022.

Thus, Bitcoin’s trading volume during the first quarter of the year was around $2.42 trillion. This is a 60% decrease from January and March 2021 which saw $6.02 trillion in transactions each.

Bitcoin does not escape the market fall

The bearish trend of the entire crypto market has caused a drop in the daily trading volume of Bitcoin. This negative sentiment has also led to a drop in investor interest in the market’s No. 1 cryptocurrency.

In January 2021, Bitcoin trading volume was $2.15 trillion and reached a daily high of around $123 billion. However, in January 2022, the market continued its downward trend started in December 2021. Thus, in the first month of the year, the trading volume of BTC was $923 billion with a daily high of around 84 billions of dollars.

In February 2021, Bitcoin trading volume was $2.26 trillion with a daily high of around $350 billion. In February 2022, however, the negative sentiment in the crypto market continued, and was even exacerbated by Russia’s invasion of Ukraine. As a result, Bitcoin trading volume dropped to $671 billion with a daily high of $46 billion.

In March 2021, Bitcoin’s trading volume was $1.61 trillion with a daily high of around $70 billion. Although the prices of most major digital assets rallied in the last two weeks of the quarter, Bitcoin trading volume ended the month in the red. As of March 2022, trading volume stood at $830 billion with a daily high of around $39 billion.

How has this decline in trading volume affected the price of Bitcoin?

Bitcoin started the year with a price of $46,311. The asset then hit a quarterly high of $48,022 on March 29 and closed the first quarter of the year at $45,538.

Simply put, there was a 1% drop between the opening and closing price of Bitcoin in the first quarter of 2022.

Source: CoinMarketCap

For comparison, Bitcoin entered 2021 at a price of $28,994. On March 13, it reached a quarterly high of $61,683, before falling 4% to close the first quarter of 2021 at $58,918.

Concretely, this means that there was a 103% increase between the opening price and the closing price for the first quarter of 2021.

Source: CoinMarketCap

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