Several major cryptocurrency exchanges have seen a month over month surge in trading volume in January. Specifically, Liquid is up 50%, bitFlyer is up 50%, Bitstamp is up 70%, Coinbase is up 80%, Bitfinex is up 90%, and Kraken is the biggest winner with a 120% month over month surge in trading volume in January.
This surge in trading volume is simultaneous with an increase in Bitcoin’s (BTC) price from around $7,000 on New Year’s Day to $9,400 by the end of January, a 34% rally. Also, the total crypto market cap surged from $190 billion to $260 billion, since most other major cryptocurrencies rallied alongside Bitcoin (BTC).
Further, the positive trend in January reverses the negative trend in December, where trading volumes declined across the board for major crypto exchanges, and Bitcoin (BTC) reached a low near $6,800.
It seems the surge in crypto exchange trading volumes and crypto prices could be a sign of the crypto bull market coming back to life. Fundamental factors that could be driving this bull market re-ignition are the block halving which is coming in just over 3 months, fears that the economy will experience a recession due to a dramatic equities bubble, and fears that the Coronavirus pandemic will spark a recession.