Ethereum

Rally

2024

Flash

Despite fear, uncertainty, and doubt (FUD), Kaiko data on January 4&nbsp;<a class="editor-rtfLink" href="https://twitter.com/KaikoData/status/1742854764671447195" target="_blank" rel="noopener nofollow">shows</a>&nbsp;that the crypto market is buzzing with activity as Bitcoin, Ethereum, and top altcoins trade volume surged past $40 billion on January 3, 2023.&nbsp; 
<img loading="lazy" decoding="async" class="size-full wp-image-272675" src="https://bitcoinist.com/wp-content/uploads/2024/01/GC_afouWsAAmp7Z.jpg?resize=680%2C368" alt="Bitcoin, Ethereum, and altcoin daily trade volume | Source: Kaiko" width="680" height="368" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/GC_afouWsAAmp7Z.jpg?resize=680%2C368?w=680 680w, https://bitcoinist.com/wp-content/uploads/2024/01/GC_afouWsAAmp7Z.jpg?resize=680%2C368?w=640 640w" sizes="(max-width: 680px) 100vw, 680px" data-recalc-dims="1"> 
<h2 id="trading-volume-rising-hours-after-crypto-flash-crash">Trading Volume Rising Hours After Crypto Flash Crash</h2> 
Notably, the sharp uptick in trading volume comes despite unverified concerns that the Securities and Exchange Commission (SEC) might not, after all, approve any Bitcoin Exchange Traded Funds (ETFs) in January 2023. 
Despite the lack of ETF approval, the crypto community remains bullish, with Bitcoin and top assets stable and arresting sharp losses of January 3. When writing, Bitcoin prices are steady, rejecting lower lows. <a href="https://www.tradingview.com/x/kZ6AtWxt/" rel="nofollow noopener" target="_blank"><img loading="lazy" decoding="async" class="size-full" src="https://www.tradingview.com/x/kZ6AtWxt/" alt="Bitcoin price trending upward on the daily chart | Source: BTCUSDT on Binance, TradingView" width="1233" height="592"></a> 
However, the January 3 bar is engulfing, bearish, and has high trading volume. Since BTC prices are still trending inside this bar, sellers are in control. A break above $46,000 and a complete reversal of recent losses will invalidate this short-term bearish outlook. 
<h2 id="hopes-of-bitcoin-etfs-and-eventual-approval-may-prop-up-prices-and-volume">Hopes Of Bitcoin ETFs And Eventual Approval May Prop Up Prices And Volume</h2> 
There are a few possible explanations for the surge in trading volume. One possibility is that investors, despite unconfirmed rumors, are bullish that the crypto and Bitcoin scene stands to benefit.&nbsp; 
Accordingly, following the initial reaction that forced markets to lower, triggering liquidation, investors doubled to stem losses, further boosting trading volume. 
Along the same vein, investors are generally hopeful about what lies ahead for Bitcoin and the crypto market in general from a regulatory standpoint. To illustrate, the <a href="https://bitcoinist.com/bitcoin-etf-deadline-sec-paperwork/" target="_blank" rel="noopener ">SEC</a> is currently reviewing applications for Bitcoin ETFs. If one or more of these applications are approved, it is estimated that billions, if not hundreds of billions, will flow to Bitcoin and indirectly to top altcoins. 
<img loading="lazy" decoding="async" class="size-full wp-image-272683" src="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374" alt="Bitcoin liquidations | Source: Coinglass" width="1024" height="374" srcset="https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=1342 1342w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/01/Screenshot491.png?resize=1024%2C374?w=1140 1140w" sizes="(max-width: 1000px) 100vw, 1000px" data-recalc-dims="1"> 
Overall, the spike in trading volume, as Kaiko notes, is bullish for crypto. It signals that despite the January 3 shake-off that saw <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">over $650 million</a> worth of Bitcoin positions closed by derivatives exchanges, mostly OKX and Binance, the sphere’s liquidity is still healthy.&nbsp; 
Even so, for now, how the market will react and how the trading volume will behave going forward is unknown. As historical performance shows, the crypto scene is volatile, which can massively influence Bitcoin.&nbsp; 
If the SEC does approve Bitcoin ETFs in January 2023, it could lead to a significant increase in institutional investment in cryptocurrencies. This event could further boost Bitcoin and altcoin prices, driving trading volume to new 2024 levels.&nbsp;

Bitcoin, Ethereum Trading Volume Surges To Over $40 Billion: Mega Rally Incoming?

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