Bitcoin Trading Volume Hits Post-Halving High Amid ‘Extreme Fear’
Bitcoin trading volumes reached unprecedented levels amid market turmoil, with the Bitcoin fear and greed index showing the lowest levels since July 2022.
Bitcoin transactions on crypto exchanges surged amid turbulent market conditions, marking a new all-time high in trading volume during this fourth Bitcoin-halving cycle.
On August 5th, crypto traders suffered significant losses, with over $600 million in leveraged long positions wiped out due to falling prices of prominent cryptocurrencies .
Considering this, the crypto community saw the Bitcoin fear and greed index fall to 17 out of 100, marking ‘extreme fear’ in the lowest reading since July 12, 2022.
As a result, some investors sold their Bitcoin holdings to minimize losses, while others bought the heavily discounted BTC in the $50,000 range.
According to Blockchain.com data, the total USD value of trading volume on major Bitcoin exchanges exceeded $1.14 billion on August 6th.
It is important to note that Blockchain.com collects data from top crypto exchanges and some OTC (over-the-counter) markets. Therefore, the actual total trading volume is much higher than reported.
The recent downturn in the cryptocurrency market is largely due to growing concerns over a potential U.S. recession.
This worry arises from last week’s disappointing job data , with the US unemployment rate at 4.30%, compared to 4.10% last month. This represents the highest since November 2021. Meanwhile, hourly earnings grew by just 0.2%, below the anticipated 0.3%.
As a result, global stock and crypto markets, including those in Europe, Asia, and the Middle East, experienced declines.
The situation is further complicated by weak economic data from Germany and Japan’s recent interest
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