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Bitcoin traders are more active again after a difficult 2023

The Dutch Bitcoin expert predicts a price of $600,000 in two years

Bitcoin price rose sharply in 2023 and this trend continued into 2024. However, the interest of traders was very moderate during this uptrend, which could be seen, for example, in the trading volume. This interest now seems to have recovered significantly.

Bitcoin is back in the spotlight

French crypto market analysis agency Kaiko writes in a research report that the Bitcoin market is in much better shape than last year. Not only has the price risen sharply since September, trading volume on 33 major crypto exchanges has also increased. As of mid-February, the combined daily volume is more than $10 billion per day.

This development has actually been observed for some time. Earlier this year, volume topped $1 trillion for the first time since 2022, while volume in 2023 reached a long low that we hadn’t seen in several years.

The average transaction value has also been over $1,000 since the beginning of this year. This amount is much higher at Coinbase – actually somewhere between $100,000 and $250,000. According to Kaiko, this is because Coinbase is used by issuers of spot ETFs for Bitcoin (BTC). When investors invest in these exchange funds, these companies purchase additional Bitcoins from Coinbase.

The depth of the Bitcoin market also increased significantly

The increased interest is also reflected in market depth, which is a measure of how well the market can process large buy and sell orders. But these can also be dealers Market leader who specifically focus on processing such large transactions. Market depth is up 23% since the end of November and up 30% year over year to $485 million. Kaiko emphasizes that the increased price is also an important reason for this.

The market share of American crypto exchanges has also increased significantly since the end of 2023. Last year it emerged that the dominance of crypto companies from the US had actually decreased significantly due to competition from the rest of the world.

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