Data shows that bitcoin spot trading volume is down by almost 60% since its recent highs, indicating that activity has fallen drastically.
Bitcoin Weekly Trading Volume Rises Rapidly, Then Hardly Falls
According to the latest weekly report from Arcane Research, BTC spot volume has recently seen a drop of around 58.7% in just nine days.
“Trading volume” is an indicator that measures the total transaction volume of bitcoins on the network right now.
When the value of this metric increases, it means that the number of coins that have changed hands on the chain is currently increasing.
Such a trend could show that traders are finding crypto attractive right now as the network is becoming more active.
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On the other hand, decreasing volume indicates that the blockchain is becoming more passive. Such a trend could be a sign that investors are losing interest in the coin.
Now, here is a chart that shows the trend in bitcoin weekly spot trading volume over the past year:
The value of the metric seems to have observed some sharp downtrend in recent days | Source: Arcane Research's The Weekly Update - Week 25, 2022
As you can see in the graph above, bitcoin trading volume has risen sharply, approaching last year’s high just a few weeks ago.
However, after peaking at around $9.2 billion on June 19, the value of the indicator started to face some sharp declines.
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As of this Monday, spot trading volume had already fallen to a value of just $3.8 billion, a 58.7% drop in just nine days.
The reason for the latest surge was the falling price of bitcoin. A large number of traders usually make their moves during such large fluctuations in prices.
The report added that the uncertain conditions in the current BTC market have made investors more cautious.
This has prompted them to trade less on-chain, which is why trading volumes have dropped sharply.
btc price
At the time of writing, bitcoin price is swimming around $19.1k, down 7% over the past seven days. In the past month, crypto has lost 34% in value.
The chart below shows the coin’s price trend over the past five days.
Looks like the value of the crypto has been going down over the last few days | Source: BTCUSD on TradingView
Bitcoin looked strong above the $20k mark during the past week, but the coin has once again fallen below the lows in the past 24 hours.
Featured image from Daniel Dan on Unsplash.com, charts from TradingView.com, Arcane Research