The first quarter of 2024 turned out to be Bitcoin’s (BTC) third-best in the past three years, according to a report from crypto data analytics platform Kaiko.
It revealed that the leading digital asset recorded over $1.4 trillion in trading volumes between January and March 2024.
A Surge in Bitcoin Trading Volume
Q1 2024 was Bitcoin’s best quarter in a year as the network witnessed a surge in trading volume. The $1.4 trillion traded in the quarter was the largest cumulative amount the network had seen in more than two years, representing a 107% increase from the $674 billion recorded in Q4 2023.
The last time Bitcoin recorded similar trading volumes was in Q1 and Q2 2021, when the network traded over $1.93 trillion and $2.16 trillion, respectively. A similar but smaller figure was also seen in Q4 2021, with $1.37 trillion traded.
Kaiko said the rise in quarterly trading volumes signaled stronger market engagement and improved market participation. This is deemed a huge feat, considering that last year’s highest volume was $1.1 trillion in the first quarter following the market’s emergence from the depth of the bear cycle.
Notably, major centralized exchanges like OKX and Bybit witnessed significant growth in their trading activity, while smaller Asian platforms like Bithumb, Korbit, Bitflyer, and Zaif recorded the highest percentage increase in trading volumes.
The Effect of Spot Bitcoin ETFs
The primary catalyst behind Bitcoin’s surge last quarter was the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States. High demand for the ETFs positively impacted the price of BTC, causing the asset to close the quarter with a 64% gain, marking its third-best quarterly performance in three years.
Bitcoin’s best quarter in terms of returns remains Q1 2021, when the asset gained 101%, while the second best is Q1 2023, when it closed with 71%.
Meanwhile, the 60-day correlation between BTC and altcoins slumped to multi-year lows in Q1 2024. Kaiko attributed the decline to altcoins’ competition for liquidity, while Bitcoin saw high inflows amid the launch of spot ETFs.
Although meme coins and artificial intelligence-linked cryptocurrencies experienced notable falls in the correlation, Uniswap’s native token, UNI, saw the highest slump in this metric because of increased volatility following a recent governance proposal.
The post Bitcoin Sees Third Best Quarterly Trading Volume in 3 Years: Report appeared first on CryptoPotato.
Source: CryptoPotato
Original Post: Bitcoin Sees Third Best Quarterly Trading Volume in 3 Years: Report