Bitcoin halving is a major event in the cryptocurrency market, affecting the development of the entire digital currency field. Recently, after Bitcoin halving, the trading volume reached the level of 20,000 US dollars, which aroused widespread attention and heated discussion in the market. In this article, we will explore the impact of Bitcoin halving on the market, analyze the reasons behind the surge in trading volume, and look forward to the future development trend of the digital currency market.

Bitcoin halving is not only an important event in the digital currency market, but also a focus of investors. After Bitcoin halving, the trading volume quickly climbed to the level of 20,000 US dollars, which amazed people. This shows that investors' demand for Bitcoin is increasing and the market is very vibrant. Bitcoin's price fluctuations have aroused investors' enthusiasm for the digital currency market, and the surge in trading volume also reflects investors' confidence and enthusiasm for digital currency.

It is not accidental that the trading volume reached the level of 20,000 US dollars after Bitcoin halving. There is a profound market logic and investor psychology behind this phenomenon. First, Bitcoin halving means a decrease in the supply of Bitcoin, which will lead to an increase in Bitcoin's scarcity, thereby promoting investors' purchase of Bitcoin. Secondly, market expectations before and after Bitcoin halving also played a role in promoting the increase in trading volume. Investors have increased their investment in Bitcoin, hoping to gain more profits through this halving event. Driven by this market psychology, trading volume has risen rapidly and market activity has increased significantly.

In addition to the influence of market logic and investor psychology, the surge in trading volume after Bitcoin halving is also closely related to changes in the market environment. In recent years, the global economic situation has been turbulent and the uncertainty of traditional assets has increased, which has led investors to look for more stable and potential investment targets. Digital currency, as an emerging investment product, is favored by investors. As the leader of the digital currency market, Bitcoin's halving event has naturally become the focus of investors' attention. Investors hope to gain more benefits through Bitcoin, a stable digital currency. Therefore, after the halving event, trading volume has risen rapidly, which also reflects investors' confidence and enthusiasm in the digital currency market.

Looking to the future, with the continuous development and improvement of the digital currency market, the surge in trading volume after Bitcoin halving may only be the beginning of the development of the digital currency market. As investors' understanding of the digital currency market gradually deepens, the scale and influence of the digital currency market will continue to expand. In the future, the digital currency market may usher in more investors and institutions to participate, and the market will become more mature and stable. Bitcoin halving is just a node in the development of the digital currency market. The future development potential of the digital currency market is huge, and investors are expected to gain more benefits in this market.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

After the halving, the trading volume of Bitcoin is approaching the level of 20,000 US dollars! In December 2017, the price of Bitcoin hit an all-time high, reaching a maximum of 19,892 US dollars on Coinbase. In South Korea, due to the regional premium, Bitcoin soared to 23,000 US dollars. In April and May of this year, the trading volume of this mainstream digital currency once again approached the level of 30 months ago.

For example, in April 2020, its monthly trading volume of Bitcoin to USDT exceeded 2.528 million BTC. Previously, in January 2018, its monthly trading volume record was only 816,000 BTC.

A similar trend is playing out on Coinbase: the US exchange processed only 118,000 less BTC in April 2020 than in January 2018, although the price fell 48% compared to that time.

The high trading volume in the Bitcoin spot market shows that actual retail investors are hoarding BTC, causing Bitcoin to touch the next $10,000 since its sudden dive in March.

Spot exchanges such as Bitstamp and Coinbase also saw a significant increase in weekly trading volume from March to April compared to the first two months of the year.

Spot exchanges are exchanges that allow cryptocurrencies to be traded against fiat currencies or stablecoins without borrowed capital. On spot exchanges, investors cannot add leverage to invest in Bitcoin with debt. Therefore, spot trading volume generally reflects its organic demand.

Bitcoin's recent rebound is driven by actual user demand, rather than the surge in buy orders in December 2019. In February this year, the price of Bitcoin on BitMEX reached $10,550, starting a strong rebound from the low of $6,410 in December 2019. But the accumulation of buy orders was so obvious at the time that traders worried that this situation could not sustain Bitcoin's short-term trend. Note that fake orders usually appear in the form of buy orders, which are generally placed on futures exchanges in an attempt to continuously stimulate Bitcoin's price increase. After the price drops, these orders are cancelled, so such growth is inorganic.

The problem with this kind of buy order manipulation is that it leaves bitcoin vulnerable. In late February, bitcoin plunged 47% to around $5,400. Then, after the coronavirus pandemic caused an economic downturn on March 12, bitcoin prices fell further to as low as $3,600 as investors abandoned riskier assets.

From March to May, bitcoin prices rebounded from $3,600 to $10,000, and futures exchanges didn’t play much of a role. For example, during the two months of the price rally, BitMEX’s weekly trading volume was lower than the previous two months.

As bitcoin spot trading volume grew faster than futures trading, demand from institutional traders began to increase.

Grayscale’s report shows that 88% of inflows to its investment vehicles come from institutional investors. Grayscale is the operator of Grayscale Bitcoin Trust, a publicly tradable investment vehicle that allows institutions and qualified investors to allocate and purchase bitcoin. On April 30, the funds managed by Grayscale Bitcoin Trust exceeded the $3 billion mark.

Its first quarter report reads:

"In the first quarter of 2020, the main source of investment funds was still institutional investors (mainly hedge funds), accounting for 88%, which even exceeded T12M's 79%."

The report also pointed out that this trend may stimulate traditional financial institutions to favor Bitcoin.

Grayscale said, "Our institutional investor field is also expanding, and as the investment concept of Bitcoin as an asset class consolidates, this trend may appear in traditional financial institutions."

These are all bullish signals. The investment philosophy or strategy of general institutions is long-term. In addition, data shows that the recent surge in Bitcoin is driven by organic demand from retail and institutional investors, and there is more reason to believe that there will be another round of recovery in the coming months.

In summary, the trading volume of Bitcoin reached the level of 20,000 US dollars after the halving, which aroused heated discussions and attention in the market. Behind this phenomenon, there are both market logic and investor psychology, and it is also closely related to changes in the market environment. In the future, the development potential of the digital currency market is huge, and investors are expected to gain more benefits in this market. The Bitcoin halving event is just a node in the development of the digital currency market. The future prospects of the digital currency market are bright, and investors are worth looking forward to and paying attention to.