Bitcoin trading volume drops to lowest since December 2020


Bitcoin trading volume is an indicator that measures the total amount of coins that are traded on the Bitcoin blockchain on any given day.
When the value of this metric goes up, it means that the amount of BTC changing is increasing. High indicator values ​​show that the network is fully active at the moment. These values ​​are usually seen during large price swings.

On the other hand, when the volume is declining, it means that the activity of the Bitcoin network is declining. This trend could mean that investors are currently waiting for the price to reach a certain level before making their moves. It can also indicate a general lack of interest in the market at the moment.

Now, here is a chart showing the trend in BTC trading volume over the past year:


As you can see in the above chart, bitcoin volume has been in a downtrend for a while now, which means that the network is becoming more idle.

This Saturday, the gauge noticed a low that had not been touched since December 7, 2020, about fourteen months ago. The daily volume was only $1.7 billion on this day.

This lower activity may indicate that general interest around the currency is at an all-time low.

This trend can be quite bearish for a currency price as a large number of traders are required to sustain any significant movement. Without it, the price may only move sideways for a while.

BTC price

Bitcoin price dropped sharply recently and touched below $36.4K, but it has since recovered. At the time of writing, the coin is hovering around $37.8K, down 13% in the past seven days. Over the past month, the value of the cryptocurrency has gained 10%.

The chart below shows the trend in BTC price over the past five days.



Post a Comment

0 Comments