According to an Arcane Research analysis, Bitcoin’s daily trade volume has reached its lowest point since 2021.
Bitcoin Activity Appears To Be Declining The daily trading activity on the top spot exchanges has decreased to the lowest it has ever been in the year 2021, as BTC’s price remains unchanged.
Here’s a graph showing how the daily trading volume of Bitcoin has varied over the last year:
The BTC daily trading volume on exchanges is presently the same as it was in mid-December 2020, as shown in the graph above.
Another interesting feature of the graph is that the largest surge occurred during the most turbulent period for the Bitcoin market. This makes sense because more people transfer their investments up and down when the price fluctuates.
The daily trading volume of Bitcoin is currently around $4 billion on a seven-day average.
The fact that the value of the all exchanges flow ratio, another BTC indicator, has touched a 9-month low back up the data.
What Does This Mean For The Cryptocurrency’s Price? The decrease in Bitcoin activity could be due to a number of factors. The most obvious one is the market’s stagnation.
The coin has been locked between the $30k and $35k price ranges for a few weeks now. The market is acting like a rangebound market, with buyers buying at the support line and sellers selling at the resistance line.
Many investors are hesitant to buy BTC in such a climate, which has resulted in limited activity on exchanges.
At the time of writing, the price of Bitcoin is hovering around $34,000. In the last seven days, it has dropped over 6%.
The market has shown no signs of recovering from the over 50% drop it experienced when China reaffirmed its crypto prohibition. Following the country’s crackdown on BTC mining hubs, the currency experienced a couple of mild falls.
Here’s a graph of the cryptocurrency’s trend over the last six months:
BTC dipped below $30k not long ago, but before a bear market could take hold, the cryptocurrency was pumped back into the $30k-$35k range.
It’s unknown when Bitcoin will be able to break free from this confinement, and it’s also difficult to predict what lies ahead. A bear market could be on the way. Alternatively, another bull run could be in the works.