Due to negative crypto market sentiment, Bitcoin trading volume in the first quarter of 2022 is two and a half times below that of the first quarter of 2021.
Bitcoin continues to recover from a downtrend that started in December 2021.
According to Be[In]Crypto Research, investor interest in the largest cryptocurrency by market capitalization saw a steep decline in the first quarter of 2022.
The trade volume recorded for Bitcoin during the first quarter of the year was approximately $2.42 trillion. This is a 60% decrease in trade volume recorded between January and March 2021 of approximately $6.02 trillion.
Fall in trading volume follows broader crypto market
A bearish trend in the overall crypto market led to a decline in daily trading volumes and can be primarily attributed to the fall in investor interest in Bitcoin.
In January 2021, Bitcoin’s trading volume was $2.15 trillion and reached a single-day high of around $123 billion. With January 2022 following the downtrend of December 2021, Bitcoin volumes have been declining. In January 2022, BTC’s trading volume was $923 billion with a single-day high of around $84 billion.
In February 2021, the trading volume of BTC was $2.26 trillion with a single-day high of approximately $350 billion. The negative crypto market sentiment carried on from the month before and was exacerbated by Russia’s invasion of Ukraine. During this time, Bitcoin volume sunk to $671 billion with a single-day high of $46 billion.
In March 2021, Bitcoin’s trading volume was $1.61 trillion with a single-day high of around $70 billion. Although the prices of most major digital assets rallied in the last two weeks of the quarter, BTC trading volume finally fell in the third month of the year. In March 2022, trading volume stood at $830 billion with a single-day high of around $39 billion.
How has the decline in volume affected BTC in the first quarter of 2022?
Bitcoin opened on Jan. 1, 2022, with a trading price of $46,311, reached a quarterly high of $48,022 on March 29, and closed the first quarter of the year at $45,538.
Overall, there was a 1% decline between the opening price and the closing price of Bitcoin in the first quarter of 2022.
For comparison, Bitcoin opened on January 1, 2021, with a trading price of $28,994, reached a quarterly high of $61,683 on March 13, and fell 4% to close the first quarter of 2021 at 58,918. $.
Overall, there was a 103% spike between the opening and closing price of Q1 2021.
