The boring price action of crypto has led to a 38% decline in Bitcoin trading volume since September’s highs.
The Bitcoin Spot Trading Volume has fallen in recent days
According to the Arcane Research weekly report, 7-day average BTC spot volumes have fallen to $7.9 Billion.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted in the spot markets on any given day.
This metric indicates that the market is active as traders are trading large amounts of coins via spot exchanges.
Low volumes on the other side could indicate that the BTC spot markets are inactive right now. If the indicators persists, it can indicate that traders are not interested in crypto at the moment.
Here’s a chart showing the change in 7-day Bitcoin trading volume over the last year.
Source: Arcane Research's The Weekly Update - Week 40, 2022| Source: Arcane Research's The Weekly Update - Week 40, 2022
You can see that the Bitcoin spot trading volume experienced an unusually high level of activity in recent weeks. This culminated in the last month’s metric reaching a new high.
Since September’s high, however, the indicator has fallen steadily and now stands at just $7.9 trillion.
This was $12.8 Billion at the peak. However, the volume of trading has fallen by around 38% over the last few weeks.
This is likely due to the relatively stagnant price movement Bitcoin, as well as wider crypto markets have experienced over the past period.
According to the report, market participants will wait for crypto’s clear direction before showing any trading activity.
At the time of writing, Bitcoin’s price floats around $19.1k, down 5% in the last week. In the past month, crypto lost 12%.
Below chart displays the trends in the value of the coin during the last five working days.
Source: BTCUSD on TradingView| Source: BTCUSD on TradingView
Bitcoin is consolidating over the past few weeks with its price stuck between $19k-20k with very few dips below that mark. Currently, it’s unclear when this boring market might come to an end.
Featured image by Kanchanara at Unsplash.com. Charts and charts are from TradingView.com. Arcane Research