El Salvador Bitcoin Day Bloodbath Sends Trading Volume Surging

After a long period of decline, the Bitcoin trading volume has finally shot up during the bloodbath of El Salvador’s legal tender day.

Bitcoin Trading Volume Surges Up On El Salvador’s Legal Tender Tuesday

As per the latest Arcane Research report, the BTC trading volume has spiked up this week after a period of continuous decline.

The real BTC 7-day average daily trading volume is an indicator that shows the amount of Bitcoin that changed hands in a day, averaged over the last week.

An uptick in the value of the metric implies more trading movement on the network. On the other hand, low volumes may indicate a lack of interest from investors in the market.

As the above graph shows, the trading volume had been relatively low for the past few months. The trend briefly changed during July, but the indicator started slipping back down again soon.

7 September turned out to be different, however; the crash from above $50k all the way down to $43k shot up the Bitcoin trading volume.

On that day, El Salvador legalized BTC as tender in the country, and the price crash happened as traders “sold” the news.

While the 7-day average value of the indicator was just above $6 billion on the El Salvador event, the actual volume on the day was a massive $14 billion spike.

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The Bitcoin trading volume has started going back to early September levels as the indicator’s value is just over $4 billion now.

Since this value is a 7-day average including the huge $14 billion spike, the actual value for today would be much lesser. This means that spot exchanges are relativity idle at the moment.

BTC Price

At the time of writing, Bitcoin’s price floats around $46.7k, down 0.1% in the last 7 days. Over the past month, the crypto has picked up 1.2% in gains.

The below chart shows the trend in the price of the coin over the past 5 days:

BTC’s price shows a lot of volatility | Source: BTCUSD on TradingView

Since the El Salvador Legal Tender day, Bitcoin has regained high volatility after a long period of relative stagnation. The above graph shows how the price movements have been like recently.

Related Reading | Why This Meeting With Jack Dorsey Could Mark A Turning Point For Bitcoin

Right now, the coin seems to be climbing back up as it gains ground above $46k. However, it’s hard to say at the moment if it can keep the trend up considering the current volatility.