The leading cryptocurrency is again seeing an increase in investor interest despite experiencing substantial dips in 2022 as a result of the global economic slowdown and war against inflation.
Bitcoin’s trading volume has continuously increased as the leading cryptocurrency seems to live up to expectations of being a safe haven asset in the high inflationary climate.
On-chain data from Santiment shows that as of September 29, Bitcoin’s trade volume reached $42.68 billion, the highest amount since mid-June.
Even while the amount of Bitcoin trades is increasing, this hasn’t had an impact on the asset’s price, which is still being surpassed by the macroeconomic conditions of the time, such as high inflation and rising interest rates.
The majority of the world’s fiat currencies are also struggling in the face of an overbearing US dollar. Since Bitcoin is seen as a hedge, it appears that investors are in a rush to dump the fiat money. Additionally, some investors are looking to make money through arbitrage.
The Bitcoin trade volume partially supports the asset’s guiding principles of thriving in high inflationary conditions, which is positive even though it hasn’t quite reached its full potential.
It is important to note that investors may not have long-term holding intentions for Bitcoin if the volume was sparked by declining fiat currency values. Investors typically turn to cryptocurrencies to purchase dollarized assets and avoid the traditional banking system when fiat currencies underperform.
Furthermore, the asset’s potential is highlighted by the rise in Bitcoin trading volume against fiat currencies. Due to its finite quantity, cryptocurrencies have been hailed by supporters as being a superior substitute for fiat money and gold.
Meanwhile, Bitcoin is seeking to break beyond the significant $20,000 level. The cryptocurrency is down roughly 1% in the previous 24 hours, valued at $19,300 as of the time of publication.