Bitcoin Spot Volume Recovers Modestly From July Low, but Stronger Demand Needed for New Highs

Bitcoin spot trading volume has gradually recovered since hitting a low in July, but stronger volume and demand will be needed for the cryptocurrency to challenge a fresh record high, according to an analysis.

CryptoQuant contributor Darkfost wrote on October 5 that as Bitcoin formed a bottom in July, spot trading volume fell to its lowest level since the previous bear market. Market interest in Bitcoin at that point was also the weakest in about three years.

Since then, spot trading volume on major cryptocurrency exchanges has shown a modest recovery. Binance's Bitcoin spot volume rose to $50 billion in September from $42 billion in July, the highest among the major exchanges.

Over the same period, Bybit's spot volume increased to $19 billion from $14 billion. Kraken's also rose, climbing to $8 billion from $4 billion, or roughly double.

Darkfost said the recovery in trading volume has coincided with the recent emergence of new upside momentum in Bitcoin. Even so, the increase so far is insufficient to confirm a decisive market rebound.

For Bitcoin to attempt a new all-time high, that trend will need to accelerate further, he added. More spot trading volume is needed and, above all, stronger demand.