According to a recent report from crypto data analytics platform Kaiko, the first quarter of 2024 witnessed Bitcoin (BTC) achieving its third-best performance in trading volume over the past three years.
During the period spanning January to March 2024, Bitcoin amassed an impressive $1.4 trillion in trading volumes, marking a substantial surge in market activity.
Notable Surge in Bitcoin Trading Activity
Q1 2024 emerged as a standout quarter for Bitcoin, boasting the highest trading volume seen in over a year. The $1.4 trillion traded during this period represented a remarkable 107% increase from the $674 billion recorded in the previous quarter, Q4 2023.
Comparable levels of trading volume were last observed during the first and second quarters of 2021, with the network witnessing trading volumes exceeding $1.93 trillion and $2.16 trillion, respectively. Additionally, a similar albeit slightly lower figure was noted in Q4 2021, with $1.37 trillion traded.
Kaiko’s analysis indicates that the surge in quarterly trading volumes signifies enhanced market engagement and increased participation, highlighting a significant milestone for the Bitcoin network. Notably, major centralized exchanges such as OKX and Bybit experienced substantial growth in trading activity, while smaller Asian platforms including Bithumb, Korbit, Bitflyer, and Zaif recorded notable percentage increases in trading volumes.
Impact of Spot Bitcoin ETFs
A primary driver behind Bitcoin’s robust performance in the last quarter was the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States. The launch of these ETFs spurred heightened demand for Bitcoin, positively influencing its price trajectory. Consequently, Bitcoin concluded the quarter with an impressive 64% gain, marking its third-best quarterly performance in three years.
Bitcoin’s strongest quarterly return to date remains Q1 2021, during which the asset surged by 101%, followed by Q1 2023, with a gain of 71%.
During Q1 2024, the 60-day correlation between Bitcoin and altcoins plummeted to multi-year lows. Kaiko attributes this decline to altcoins vying for liquidity, while Bitcoin experienced significant inflows following the introduction of spot ETFs.
While meme coins and cryptocurrencies linked to artificial intelligence witnessed notable declines in correlation, Uniswap’s native token, UNI, saw the most significant drop in correlation due to heightened volatility following a recent governance proposal.
