Bitcoin’s spot volume is tiny compared to the US equity and global exchange markets, however, data by Coinmetrics suggests that Bitcoin volume could surpass all major assets in the next four years
Bitcoin spot markets currently total around $4.1 billion in daily volume — an amount currently dwarfed in comparison to the $446 billion in US equity spot markets and the $893 billion US Bond spot markets.
However, according to Coin Metrics, Bitcoin’s spot volume market could surge within the next four years to surpass both of these markets.
A look at the figures means that current daily spot volumes give Bitcoin a market capitalisation “most comparable in size to a large capitalization stock rather than a distinct asset class.”
While Bitcoin looks to attract large institutional investors, CoinMetrics notes that the low levels of volume on spot exchanges could be a reason for caution.
The research and analytics platform says that institutional investors — including endowments, pension funds, or sovereign wealth funds — might view Bitcoin as an investment “only suitable for a portion of the already small allocation to alternative assets rather than carving out a separate allocation towards it.”
Bitcoin spot volume peaked in 2017
Interest in Bitcoin drove the spot markets to its peak during the 2017 bull market, with daily volumes on exchanges hitting $8.0 billion.