3 reasons Bitcoin spot volume reaching new yearly peak is highly optimistic

According to the data from Arcane Research, the spot volume of Bitcoin has reached a new yearly high.

Since late October of this year, the spot volume of Bitcoin rose by more than 270%. It coincides with BTC's rally above $15,000 and the repeated retest of the $16,000 resistance.

Bitcoin's spot volume rising is a highly positive trend for three key reasons.

Usually, the spot market reflects real buyer demand from retail traders because it is harder to spoof the market without leverage.

Arcane Research analysts found that the spot market's volume increased 270% in the past month.

"Bitcoin continues to impress and almost touched $16,000 last week. The rest of the crypto market is also seeing massive returns at the moment and the market sentiment is at historical high levels. The bitcoin spot volume has increased more than 270% over the past month and is now at the highest level seen in 2020.".

The rapid growth of the spot market shows that the ongoing Bitcoin rally is driven by the spot market, not derivatives.

When Bitcoin is led by the spot market, the probability of a sudden correction is lower.

Atop the rising spot volume, even in the derivatives market, institution-tailored platforms are taking a larger market share.

The confluence of a spot market-driven Bitcoin rally, growing volume of CME, and the increasing retail demand could further strengthen the current momentum of BTC. It would also reduce the likelihood of major trend reversals in the foreseeable future, due to the overall market structure.