Definition
Bid volume is a trading concept that measures how many units of a cryptocurrency market participants are trying to buy at various bid prices. It is aggregated from all active buy orders on the bid side of the order book and is typically expressed in the base asset being traded. Bid volume can be considered at a single price level or summed across multiple price levels to show the total buying interest within a price range.
In crypto markets, bid volume helps describe the demand side of trading activity at a given moment. Higher bid volume at or near the current market price often signals stronger immediate buying interest, while lower bid volume may indicate thinner demand. As a core component of liquidity depth, bid volume interacts with ask volume to shape how easily trades can be executed without significantly moving the market price.
Context and Usage
Bid volume is always viewed in the context of the order book, where it appears as stacked quantities at different bid prices. Market participants monitor changes in bid volume to understand how much buy-side interest exists at specific levels and how resilient the market may be to sell pressure. Sudden increases or decreases in bid volume can reflect shifting sentiment or the arrival or withdrawal of large buyers.
As part of overall liquidity depth, bid volume contributes to assessing how much size the market can absorb on the sell side before prices move materially. On venues with robust order books, deep bid volume across multiple price levels generally corresponds to more stable trading conditions. In contrast, sparse bid volume can be associated with higher slippage and more volatile price reactions to sell orders.