March Marks Record High in Bitcoin Trading Volume, Goldman Sachs Reports Crypto Options Surge

By: Eliza Bennet

Bitcoin's trading volume on centralized exchanges (CEXs) noted a significant spike in March 2024, marking the highest recorded CEX volume since May 2021. The trading volume's increase offers insights into market sentiment, liquidity, and overall health of the crypto market, exhibiting a seven months long astronomical rise from $18.409 billion to $494.056 billion.

Surprising trends are revealed in the distribution of the trading volume across various exchanges. Notably, 52% of the Bitcoin's total CEX trading volume was on Binance, despite the significant role US plays in global crypto market. Binance’s BTC trading volume surged from $91.9 billion in October 2023 to $321.6 billion in March 2024. With just 6.41% of the total BTC trading volume, OKX held the second place while Coinbase accounted for only 4.22%, ranking third overall.

Separately, Goldman Sachs is experiencing a resurgence of interest in crypto options from its hedge fund clients following the approval of spot Bitcoin ETFs in the U.S. in January. This trend highlights the growing mainstream acceptance of crypto assets in institutional finance.

In the midst of Bitcoin's trading volume relative to the rest of the market, it represented just over 29% of the total crypto trading volume on CEXs. The sustained increase in trading volume, coupled with the significant price correction after Bitcoin’s peak in early March, indicates a more stabilized market capable of absorbing shocks and fluctuations. This represents the crypto market's significant move towards resilience and long-term stability.