- The overall downward trend in the cryptocurrency market has weighed heavily on Bitcoin trading volumes.
- Market data show that Bitcoin’s trading volume in the first quarter was roughly half of what it was in 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 observed in January and February. The effects of this bear market were reflected clearly in trading volume figures.
Bitcoin trading volume in Q1 2022
Investor interest in Bitcoin, in particular, declined markedly across the crypto market. The flagship cryptocurrency saw its trading volume fall by $3.6 trillion, from about $6.02 trillion in the first quarter of last year to $2.42 trillion between January and March of this year.
A breakdown of these figures further shows that the combined trading volume for Q1 2022 was slightly higher than the average monthly volume for the first three months of 2022. Last year, Bitcoin’s trading volume exceeded $2 trillion in two of the first three months — roughly $2.15 trillion and $2.26 trillion, respectively. The comparable figures this year dropped to $923 billion and $671 billion.
Single-day monthly peaks of approximately $123 billion and $350 billion were recorded in January and February 2021. Those peaks declined to about $84 billion and $46 billion this year.
This decline is also evident when comparing March 2021 to March 2022. Bitcoin’s trading volume was nearly halved, falling from $1.61 trillion to $830 billion year over year.
Bitcoin price action in Q1 2022
Despite a push toward a quarterly high north of $48,000 on March 29, Bitcoin showed no net price gain between January and March. According to CoinMarketCap data, the asset opened the year around $46,300 and finished the quarter just above $45,800.
The price movement for Bitcoin during the same period in 2021 was dramatically different. For context, BTC/USD moved from roughly $29,000 on the first day of last year to a quarterly high near $61,700. After reaching that peak, the pair corrected somewhat and ended the quarter around $59,000.