Bitcoin trading volume drops to five-year lows


On August 12, Bitcoin trading volume on spot and derivatives exchanges fell to 112,317 BTC, the lowest level since November 10, 2018. It is reported by CNBC with reference to data from the CryptoQuant analytical platform.

As of August 26, this figure was 129,307 BTC, about 94% below the March high of 3.5 million BTC.

CryptoQuant explains this by the departure of retail investors during the bear market. Additionally, this dynamic was influenced by US regulatory measures regarding cryptocurrencies, combined with the end of the banking crisis in May.

“In general, the market remained sluggish in anticipation of a new catalyst, and overall market liquidity was tight… Participants remain uninterested in trading as the market waits for catalysts,” added Bernstein analyst Gautam Chhugani.

In his opinion, the real opportunity for investors “is to stay the course in the new market cycle”, which usually coincides with the halving. The next reduction in miner rewards is scheduled for spring 2024.

At the time of writing, the first cryptocurrency is trading at $25,970, according to CoinGecko. During the year, the price of the asset increased by about 32%.

Recall, according to CoinMarketCap, in the second quarter of 2023, the total volume of spot trading on the 20 leading bitcoin exchanges decreased by 36% – from $2.6 trillion to $1.66 trillion.

Analysts Glassnode believe that the balance of coins achieved in the bitcoin market is associated with the “reaccumulation” phases in previous cycles. The latter are characterized by the absence of strong movements for several months.

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