The approval of the first Bitcoin Trading location has sparked a surge in cryptocurrency trading on exchanges. In December 2023, the BTC ETF surpassed $1 trillion in volume, a level not seen in over a year. This trend continued into January 2023, with trading volume reaching $1.1 trillion.
December 2023 vs. September 2022
In September 2022, monthly trading volume on cryptocurrency exchanges had already surpassed $1 trillion. This was the highest monthly figure since May 2022. The platform predicts that trading volume will reach $1.35 trillion by 2022.
Binance is the most popular platform for cryptocurrency traders, accounting for nearly 40% of the total exchange volume in December 2023 at $432 billion. Upbit and OKX followed with 8.3% and 8% of the volume, respectively.
Steven Zheng, Director at The Block, noted that the high trading numbers for December were likely due to excitement surrounding the potential approval of the first spot Bitcoin ETF. He stated, “The fact that monthly spot volumes cracked $1 trillion for the first time in over a year really speaks to the optimism the industry has on the forthcoming spot Bitcoin ETF approval and rebirth of a bull market.”
This optimism also led to a brief surge in the flagship DeFi asset, with prices briefly reaching $45,000 before dropping back to $43,389.
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