Due to negative crypto market sentiment, Bitcoin trading volume in the first quarter of 2022 is two and a half times below that of the first quarter of 2021.
Bitcoin continues to recover from a bearish trend that started in December 2021.
According to Be[In]Crypto Research, investor interest in the largest cryptocurrency by market capitalization saw a steep decline in the first quarter of 2022.
The trading volume recorded for Bitcoin during the first quarter of the year was approximately $2.42 trillion. This was a 60% decrease in the trading volume recorded between January and March of 2021 of around $6.02 trillion.
Fall in trading volume follows broader crypto market
A bearish trend in the overall crypto market led to a decline in daily trading volumes and can be primarily attributed to the fall in investor interest in Bitcoin.
In January 2021, the trading volume of Bitcoin was $2.15 trillion and had a single-day high of around $123 billion. With January 2022 following December 2021’s bearish trend, Bitcoin volumes dwindled. In January 2022, BTC’s trading volume was $923 billion with a single-day high in the region of $84 billion.
In February 2021, the trading volume of BTC was $2.26 trillion with a single-day high of approximately $350 billion. The negative crypto market sentiment carried on from the month before and was exacerbated by Russia’s invasion of Ukraine. During this time, Bitcoin volume sunk to $671 billion with a single-day high of $46 billion.
In March 2021, the trading volume of Bitcoin was $1.61 trillion with a single-day high in the region of $70 billion. Although the prices of most major digital assets recovered in the last two weeks of the quarter, BTC trading volume ultimately fell in the third month of the year. In March 2022, the trading volume of $830 billion with a single-day high of approximately $39 billion.
How has the decline in volume affected BTC in the first quarter of 2022?
Bitcoin opened on Jan. 1, 2022, with a trading price of $46,311, reached a quarterly high of $48,022 on March 29, and closed the first quarter of the year at $45,538.
Overall, there was a 1% decrease between Bitcoin’s opening and closing price in Q1 2022.
For the sake of comparison, Bitcoin opened on Jan. 1, 2021, with a trading price of $28,994, reached a quarterly high of $61,683 on March 13, and dropped 4% to close the first quarter of 2021 at $58,918.
Overall, there was a 103% spike between the opening and closing price of Q1 2021.