For the first time since September 2022, monthly trading volume on cryptocurrency exchanges exceeded $1 trillion.
The December figure is $1.1 trillion, according to The Block. A higher value was last recorded in May 2022 ($1.35 trillion).
Data: The Block.
Binance accounted for 39.3% of total trading volume ($432.7 billion) in December. Upbit’s figure is 8.3% ($91.8 billion), OKX’s is 8% ($87.5 billion).
ETF-optimism
The December surge in trading activity is likely fueled by market enthusiasm for the potential approval of spot Bitcoin ETFs in the US.
“Given the holiday season, December is historically a slow month in the context of cryptocurrency trading,” noted Head of The Block Research Stephen Zheng. “The fact that monthly spot trading volume exceeded $1 trillion for the first time in over a year truly indicates industry optimism regarding the impending approval of a spot Bitcoin ETF and the resurgence of the bull market.”
However, K33 Research analyst Vetle Lunde admits, that the approval of a new product expected between January 8 and January 10 will trigger the development of the “sell with facts” scenario. According to him, a significant part of short-term investors see the “green light” from the US Securities and Exchange Commission as a signal to take profits.
However, Lunde, with a 20% probability, assumes a scenario with a significant influx of funds into spot Bitcoin ETFs, leveling out the selling pressure from speculators.
Data from prediction platform Polymarket indicates an 89% chance of approval for digital gold exchange-traded funds before January 15th. Last month this figure was 50%.
Data: Polymarket, CoinDesk.
Previously, K33 Research analysts assumed that the approval of a spot Bitcoin ETF would occur by January 10, 2024.
Let us remind you that on January 2, the price of Bitcoin exceeded $45,000.
The last time digital gold traded at such high levels was in early April 2022, before the collapse of Terra and the subsequent “infection” of the crypto industry.
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2024-01-02 18:24:17
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