According to data firm Kaiko, the increase in crypto market volatility goes hand in hand with the growing participation of investors in the bitcoin market.

The bitcoin market has seen unprecedented activity in the first eight months of 2024, surpassing the nominal trading volume record set during the 2021 bull market. Cumulative trading volume, or the dollar value of BTC bought and sold on centralized exchanges, reached $2.874 trillion in the first eight months of the year, according to Kaiko, a Paris-based data provider.

This figure is nearly 20% higher than the $2.424 trillion volume recorded in the first eight months of 2021 and is the highest level since 2012.

Bitcoin Trading Volume January-August | Kaiko

“The increase in crypto volatility has been accompanied by an increase in market participation, at least in the bitcoin market,” Kaiko said in its weekly report, discussing record trading volumes.

Data from charting platform TradingView shows bitcoin's 10-day realized volatility spiked to 100% year-on-year in April, as strong inflows into U.S.-listed bitcoin spot ETFs and expectations of a Fed rate cut pushed the cryptocurrency to a record high above $70,000.

Volatility picked up again early last month as concerns about the US economy and the unwinding of the yen carry trade unsettled risk assets, including cryptocurrencies.

Carry trade is a strategy of taking advantage of low borrowing costs in Japan to invest in higher yielding assets elsewhere. When yields are squeezed by the Bank of Japan raising interest rates, a unwinding process occurs, affecting asset values.

Source: https://tapchibitcoin.io/bitcoin-trading-volume-reached-28-thousand-usd-from-january-to-august-august.html