US Bitcoin Investor Trading Volume Increases, Stage Set for Another Massive Rally?

The crypto market has been thrown into a state of euphoria over the past 24 hours as the price of bitcoin has once again surged. In its latest run, the digital asset was able to retest the $29,000 resistance before being rejected but remained well above $28,000. This time, the dominance of US investors is on the rise, suggesting that they could be leading the rally.

US Bitcoin Trading Volume Rises 44%

Trading volume from US investors plunged 29% in January and uncertain regulatory headwinds didn’t help investor sentiment much. However, that quickly changed, with US investors taking advantage of lower prices last week when BTC fell below the $25,000 resistance level.

A reports Caco shows that US investor BTC trading volume increased sharply in June by 44% compared to January figures. This change in bitcoin trading volume suggests that investors are moving back to BTC, leaving altcoins behind once again.

BTC volume on US exchanges rise to 44% | Source: Kaiko

This explains the fact that while bitcoin has been on an impressive rally, altcoins have not seen as much upside. Thus, it is safe to say that the majority of this rally will be focused on BTC, indicating further upside potential from here.

A move towards BTC compared to altcoins also reflects a lower risk appetite among crypto investors. This is because while altcoins provide an opportunity for high profits, it also comes with a high risk of loss, so bitcoin is a choice for investors when the market comes back from a bear, but does not want to take too much risk. .

BTC Stabilizes Above $28,000

After adding $2,000 to the digital asset’s value over the past 48 hours, bitcoin bulls have now set their sights on the $30,000 price level. This recovery signals the start of another 100% run, possibly seen in the first quarter of 2023.

BTC reclaims $28,000 support | Source: BTCUSD on TradingView.com

If this happens, $40,000 is a conservative stopping point for BTC price. The question remains whether this rally will rub off on altcoins that are still struggling, especially since most of the new volume is currently focused on bitcoin.

Nevertheless, a rise to $40,000 would be a welcome development for the BTC market and could mark the start of another massive bull rally a year earlier than expected.

At the time of writing, BTC has broken above $28,900, displaying gains of 8.23% over the past 24 hours. The cryptocurrency is performing even better on the 7-day charts after gaining 11.34% bringing its total market cap above $561 billion.