In a continuation of bullish events this week, total volume reached an all-time high of $89 billion on the 3rd April. This compares to $28 billion when Bitcoin was at its peak in mid-December 2017. However, with accusations of fake volume still fresh on our minds, as well as Tether showing a higher volume than Bitcoin, investors should tread carefully.
Volume relates to the value of transactions traded in the market at a given time. For each buyer, there will be a seller. And when both parties agree on a price, that transaction contributes to the total volume. It follows that high volume indicates high interest. But more than that, volume is an indication of market movement. On defining volume, Investopedia says: