This week’s $11,000 drop occurred in just 32 hours and this definitely an important milestone for Bitcoin (BTC) price.
Many mainstream media outlets perceived the correction as the start of a new bear market but data simply does not support this line of thinking.
Bitcoin price may have corrected 26.5% as if dropped to retest the $30,300 support but it has since shown significant strength amidst a record-high $160 billion in derivatives volume.
BTC futures daily volume, in USD. Source: coinalyze.net
Spot exchanges also outpaced their previous record high that was set just three days ago on Jan.9 as BTC soared to a new all-time high at $41,950. The incredible $27.7 billion in volume seen on Jan.11 was 60% higher than the previous peak.
By itself, Binance exchange-traded $9 billion worth of BTC, which is more than double the entire industry average seen in December 2020.
The infamous 50% intraday crash on March 12, 2020, resulted in $8 billion volume on spot exchanges. To put things in perspective, Ether (ETH) traded $16 billion volume on Jan. 11.