Bitcoin Forum

Bitcoin reached its all time high daily trading volume at $5 bln earlier this week, primarily because of the current regulatory policies on Wealth Management Products in China. The rapid surge in daily trading volumes allowed the Bitcoin price to reach a multi-month high, surpassing $733 in most markets.

https://cointelegraph.com/news/bitcoin-reaches-all-time-high-daily-trading-volume-at-5-bln

It is best not to look at Chinese volumes, because zero transaction fee trading can inflate volumes.
Coinmarketcap gives the daily volumes at $100Mn, a far cry from the $5Bn mentioned in the article.

While I do expect the figure to rise further, it's best to take it with a pinch of salt, as many exchanges pad their numbers.  Perhaps they think it looks good to potential investors or something.  Even back in 2013, there were claims that OKCoin were fudging the figures (http://www.coindesk.com/chinese-bitcoin-exchange-okcoin-accused-faking-trading-data/).  And even today, looking at the current figures (http://www.cryptocoincharts.info/markets/graphicalComparison), it looks like OKCoin are still claiming to have the highest volumes, so it's probably fair to assume they're still doing it.

Chinese exchanges might not be the only ones padding volumes, what about Western exchanges here in the U.S and even in Europe? Padding could be a worldwide thing.

It could be, but a 1% fee really hinders it. No fees means you buy 10BTC, sell 10BTC, buy 10BTC, sell 10BTC. That's what they mean by the volumes being inflated. Why wouldn't you do that if there's no fee to pay? It's less risk because of it.