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Data shows that bitcoin spot trading volume has fallen by about 60% from recent highs, suggesting that activity has fallen sharply.
Bitcoin’s weekly trading volume rises sharply, and then falls sharply
According to the latest weekly report from Arken Research, BTC spot volume has recently dropped by about 58.7% in just nine days.
“Trading volume” is an indicator that measures the total amount of bitcoin traded on the network at the moment.
When the value of this metric increases, it means that the number of coins changing hands in the chain is currently increasing.
This kind of trend may show that traders are finding crypto attractive at the moment because the network is becoming more active.
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On the other hand, the declining volume indicates that the blockchain is becoming more dormant. Such a trend could be a sign that investors are losing interest in the currency.
Now, here is a chart that shows last year’s trends in Bitcoin weekly spot trading volume:
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, the trading volume of Bitcoin has risen sharply and reached close to last year’s highest price just a few weeks ago.
However, after reaching a peak of about $ 9.2 billion on June 19, the value of the index began to experience some sharp downward trend.
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As of this Monday, spot trading volume has already dropped to just 3. 3.8 billion, down 58.7% in just nine days.
The reason behind the recent rise was the decline in the price of Bitcoin. A large number of traders usually take their steps during such a big change in prices.
The report noted that the current BTC market uncertainty could make investors more cautious.
This has led to fewer transactions in their chains, which has led to a sharp drop in trading volume.
BTC price
At the time of writing, the price of Bitcoin is about $ 19.1k, down 7% in the last seven days. Last month, crypto lost 34% of its value.
The chart below shows the trend of currency prices in the last five days.
Looks like the value of the crypto has been going down over the last few days | Source: BTCUSD on TradingView
Bitcoin seemed to be strong above the 20k mark last week, but over the last 24 hours the currency has fallen below the level again.
Featured image from Daniel Dan on Unsplash.com, charts from TradingView.com, Arcane Research
