Bitcoin Retail Interest Surges, Boosting BTC Trading Volume

Bitcoin spot trading volume on centralized exchanges had its highest day in the past year on March 5, reaching $46.26 billion. This indicates that more retail investors are now buying the cryptocurrency. The volume dropped to $31.32 billion on March 6, with Binance accounting for over 74% of the daily volume. Spot trading volume has increased by nearly 680% since the beginning of the year. The surge in trading volume coincided with a record high in daily inflows for spot Bitcoin ETFs in the US, reaching $10 billion on March 5. This surge in volumes and ETF activity drove the price of Bitcoin to a new all-time high of over $69,200 on the same day.

Retail interest in Bitcoin is also increasing in South Korea, where it reached $72,000 on March 5 on Upbit, the country’s largest cryptocurrency exchange. This price difference, known as the Kimchi premium or Korea premium index, has been following the upward trend of Bitcoin since February. As South Korea does not have approved Bitcoin ETFs, retail spot buying is likely driving this premium. The number of addresses holding at least $10 worth of Bitcoin reached a new all-time high of over 35 million on March 6, indicating increased retail investor participation.

Search trends for Bitcoin remain elevated worldwide, with an average of 80 searches between March 3 and 9, a 31% increase from a year ago. This suggests continued interest in the cryptocurrency. The number of Bitcoin transfers to Coinbase, the largest US-based exchange, is also rising, indicating that investors may be preparing to take profits at current price levels. It is important to note that previous spikes in transfer activity have not necessarily indicated the top of a bull market, as was seen in 2016-2017.