The bull run in Bitcoin prices since the beginning of 2023, during which the value of the currency increased by about 70%, has been coupled with a rise in trading volumes.

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Recently, daily trade volumes increased to well than $70 billion, the biggest amount seen since the days following the FTX collapse.

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When last traded, bitcoin was slightly over $28,000, up more than 40% from monthly lows under $20,000.

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The 21 and 50-day Moving Averages of Volumes have recently crossed above the 200DMA of Volumes, and the former is on the verge of reaching its highest level since mid-2021, indicating that Bitcoin trade volumes do indeed appear to be in a clear uptrend.

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High trade volumes occur when the market is moving aggressively, such as during severe bear and bullish market stages.

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The market should remain in the first of these phases, in the hopes of the Bitcoin bulls.

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On-chain Stats Are Also Trending Positively

The exchange-related improvements come at a time when on-chain data indicates that traffic on the Bitcoin blockchain is also increasing up.

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The data below, provided by The Block, show that the volume of daily transactions on the Bitcoin blockchain just reached its highest level since early 2021.

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The increase of active identities on the Bitcoin network, in contrast, hasn't been as significant in recent weeks, but it's still very close to multi-month highs.

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Also, there has been an increase in the frequency with which new addresses are connecting to the Bitcoin blockchain for the first time.

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Addresses with a balance that is not zero also keep climbing. Data provided by Glassnode indicates that this statistic recently crossed 45 million for the very first time.

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Concerns about the financial crisis may drive bitcoin even higher.

Analysts believe that the world's largest currency by market cap could still rise despite mounting technical indicators suggesting the short-term Bitcoin market is heating up.

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In recent weeks, Bitcoin has served as a safe haven, rising with gold as investors flocked to monetary alternatives that are resistant to the collapse of the established banking system.

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Following Wednesday's policy decision, crisis concerns may grow if US Federal Reserve Chairman Jerome Powell fails to effectively communicate the prospect for policy tightening.

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Mike McGlone, senior macro strategist at Trade Algo, believes that Bitcoin's recent price earnings growth versus gold may be a sign that a new "supercycle" is beginning.

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McGlone also suggested that recent relative performance vs the majority of assets may be a sign that Bitcoin is shifting from trading as a risk asset to one that trades more like gold and US treasuries (i.e. a safe haven).

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