- The overall downward trend in the cryptocurrency market has reduced Bitcoin’s trading volumes
- Market data show Bitcoin’s trading volume in the first quarter was less than half of the same period last year
Many cryptocurrencies lost significant value during the first two months of 2022. Although late-March data showed a steady upward movement in prices, those gains were not large enough to offset the heavy losses recorded in January and February. The bearish market environment was reflected in trading volume data as well.
Bitcoin trading volume in the first quarter of 2022
Investor interest in Bitcoin has declined sharply along with the broader cryptocurrency market. The leading digital asset saw trading volume fall by roughly $3.6 trillion, dropping from about $6.02 trillion in the first quarter of last year to $2.42 trillion between January and March of this year.
Looking closer at the numbers, combined trading volume for the first quarter of 2022 was only slightly higher than the average for the opening three months of the year. Last year Bitcoin exceeded $2 trillion in trading volume in the first two months—$2.15 trillion and $2.26 trillion, respectively—whereas the equivalent figures this year fell to $923 billion and $671 billion.
One-day monthly peaks that reached roughly $123 billion and $350 billion in January and February 2021 dropped to about $84 billion and $46 billion this year.
This downtrend is also evident when comparing March 2021 with March 2022. Bitcoin’s trading volume for the month was reduced by nearly half, falling from $1.61 trillion last year to $830 billion this year.
Bitcoin price action in the first quarter of 2022
Although Bitcoin surged to a quarterly high above $48,000 on March 29, it finished the first quarter without a net positive price change from January to March. The asset opened the year trading around $46,300, according to CoinMarketCap data, and closed the final day of the quarter slightly above $45,800.
The year-over-year price movement was far more pronounced. For context, BTC/USD rose from about $29,000 on the first trading day of last year to a quarterly high near $61,700. After reaching that peak, the pair underwent a correction and closed that quarter around $59,000.