Data shows the Bitcoin spot trading volume has dropped down almost 60% since the recent high, suggesting activity has severely fallen.
Bitcoin Weekly Trading Volume Rises Sharp, And Then Falls Hard
As per the latest weekly report from Arcane Research, the BTC spot volume recently observed a drop of around 58.7% in just nine days.
The “trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the network right now.
When the value of this metric goes up, it means the number of coins changing hands on the chain is currently going up.
Such a trend may show that traders are finding the crypto attractive right now as the network is becoming more active.
Related Reading | Bitcoin ASIC Miners Plummet To Lowest Price Since Jan 2021
On the other hand, declining volumes suggest the blockchain is becoming more dormant. This kind of trend can be a sign that investors are losing interest in the coin.
Now, here is a chart that shows the trend in the 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 above graph, the Bitcoin trading volume sharply rose up and got close to the highest value for the past year just a couple of weeks back.
However, after peaking out at around $9.2 billion on 19th June, the indicator’s value started facing some sharp downtrend.
Related Reading | Here Are Bitcoin And Ethereum’s Flaws, According To This Pentagon Investigation
By this Monday, the spot trading volume had already crashed down to a value of just $3.8 billion, a 58.7% plummet within just nine days.
The reason behind the latest surge was the plunging value of Bitcoin. A large number of traders usually make their moves during such large swings in the price.
The report notes that the uncertain conditions of the current BTC market may have resulted in investors becoming more cautious.
This has lead to them making fewer trades on the chain, which is why the trading volume has sharply plunged down.
At the time of writing, Bitcoin’s price floats around $19.1k, down 7% in the last seven days. Over the past month, the crypto has lost 34% in value.
The below chart shows the trend in the price of the coin over 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 holding strong above the $20k mark during the last week, but over the past 24 hours the coin has once again slipped down below the level.
Featured image from Daniel Dan on Unsplash.com, charts from TradingView.com, Arcane Research