In recent days, an important development occurred for the cryptocurrency markets as the monthly trading volumes on crypto exchanges surpassed the $1 trillion mark for the first time since September 2022.
Crypto Trading Frenzy
According to data provided by a crypto research platform, the transaction volume for December impressively reached $1.1 trillion. This figure is noteworthy following the $1.35 trillion peak seen in May 2022.
Leading the December trading frenzy, Binance accounted for $432.7 billion in transactions, making up 39.3% of the total volume. Binance was followed by Upbit with a volume of $91.8 billion, representing an 8.3% share. Close behind was OKX with a transaction volume worth $87.5 billion, creating an 8% share.
The unexpected surge in trading activities during December is being associated with the potential approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the United States.
Stephen Zheng, President of The Block Research, commented on the activities:
Considering the holiday season, December is historically a slow month for crypto trading. The monthly spot trading volume exceeding $1 trillion for the first time in over a year really shows the industry’s optimism for the impending approval of a spot Bitcoin ETF and the revival of the bull market.
Expectations Rise for Bitcoin ETF Approval
In the latest weekly newsletter from leading on-chain analysis firm CryptoQuant, it was mentioned that a decision in the United States could lead to the approval of numerous spot Bitcoin ETFs, potentially resulting in a “sell the news” event.
The firm’s analysis suggests that investors may want to continue with their significant unrealized profits due to the recent rise in Bitcoin’s value.
On the other hand, predictions by Polymarket saw a significant change, with the expectation of a spot Bitcoin ETF approval before January 15th rising to 89%, a notable increase from the previous month’s 50% prediction. The K33 Research team also believed that a spot Bitcoin ETF could be approved by January 10, 2024.
Crypto enthusiasts are highly excited about the approval of spot Bitcoin ETFs, and the optimism in the market has become a major driving force for Bitcoin, the leading cryptocurrency.
