Bitcoin Trading Volume Stabilizes at July 2021 Lows as Market Sleeps


Data shows that weekly average Bitcoin trading volume has stabilized around the same lows as July 2021 as market activity remains low.

Bitcoin trading volume has remained low in recent weeks

According to the latest weekly report from mysterious investigationBTC trading volume has recently fallen to its July low.

The “trading volume” is an indicator that measures the total amount of Bitcoin traded in a chain in a day.

When the value of this stat increases, it means that investors are moving a larger number of coins at the moment. Such a trend suggests that market activity increases as holders become more interested in trading.

On the other hand, a downward trend in the indicator implies that the Bitcoin market is currently going dormant. This could indicate a general lack of interest in the crypto among investors at the moment.

Here is a chart showing the trend in BTC trading volume over the past year:

The value of the indicator seems to have been low recently | Source: Arcane Research’s Weekly Update – Week 15, 2022

As you can see in the chart above, the daily Bitcoin spot trading volume has struggled a lot lately, falling to 7-day average values ​​of just $3 billion.

Related literature | Now or never: Bitcoin builds base on decades-long parabolic curve

The statistic is now at the same low as July last year. At the time, the price had been consolidating sideways for a few months after the May crash.

Bitcoin Price Rising Above $42k, Could It Revive Volume?

Usually, there have been periods of high trading volumes where the price of BTC has successfully made some big moves. It is because to sustain such a move, the market needs a large number of active traders.

Related literature | Calm Before The Storm: Bitcoin Volatility Reaches Pre-Bull Breakout Levels

But it is also true that every major price move attracts more investors to the market, increasing the volume. In cases where it doesn’t happen, the rally generally dies out quickly.

Today, Bitcoin price has moved above USD 42k after diving below the USD 39k level a few days ago. The graph below shows the trend.

The value of BTC seems to have risen in recent days | Source: BTCUSD on TradingView

It is possible that this new wave could revive the volume a bit. However, it is also true that there have already been a few cases this year where a price increase has not been accompanied by a peak in volume. It remains to be seen which scenario will play out this time.

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Leave a Reply

Your email address will not be published.