Bitcoin Trading Is Signaling Something It Hasn't For Weeks: Should Traders Be Worried?

Daily trading volume for Bitcoin BTC/USD has seen a consistent increase in 2023 compared to last year, according to a recent research report.

Published by Kaiko, the report stated the daily trade volume for BTC dipped to yearly lows towards the end of 2022 due to poor sentiment among retail investors following the collapse of FTX FTT/USD.

This sentiment reportedly picked up significantly at the start of 2023, with daily BTC volume crossing $14 billion at times during February.

Also Read: 'They Are Scared': Crypto Ecosystem Pushbacks Over International Monetary Fund Control

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Interestingly, BTC was slightly more correlated with the HSCE than the CSI since the start of the year, possibly due to the greater global investment in the HSCE.

The report suggested the influence of China on crypto asset prices has been limited after a wave of regulatory crackdowns on cryptocurrencies beginning in 2017.

This could change in the coming months if some of the pent-up Chinese demand finds its way into crypto via Hong Kong.

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