Data shows the daily Bitcoin trading volume surged to its highest value since December 2021 on Monday, the day of the crash.
When the value of this metric increases, it means the number of coins exchanging hands on the chain is going up.
Such a trend shows that activity on the BTC network is rising up as investors are becoming more interested in trading the coin.
On the other hand, declining values of the trading volume suggest the Bitcoin network is becoming more inactive.
This may be because of a general lack of interest around the crypto, or simply due to investors waiting for specific price levels before they make their moves.
Now, here is a chart that shows the trend in the Bitcoin trading volume over the past year:
As you can see in the above graph, the 7-day average daily Bitcoin trading volume has observed a rise in the last few days.
When the crypto’s price crashed down into the low 20ks on Monday, the single day value of the indicator was around $15.7 billion.
The report notes that as the market was now experiencing extreme fear for the 56th consecutive day, the chaos on Monday finally pushed investors to make some moves.
The flood of sell orders by these Bitcoin holders lead to the price further crashing, and to the trading volume shooting up.
The below chart shows the trend in the price of the coin over the last five days.
During the crash, Bitcoin went down to as low as $20k, before recovering a bit to the current level. Since then, it has mostly been moving sideways over the last couple of days.