Bitcoin Boredom Causes Trading Volume To Dive 38% From September Highs

Keshav Verma

1 year ago

3 mins read

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Data shows the Bitcoin trading volume has declined by 38% since the highs in September as a result of the boring price action in the crypto.

Bitcoin Spot Trading Volume Has Plunged Down In Recent Days

As per the latest weekly report from Arcane Research, the current 7-day average BTC spot volumes are down to just around $7.9 billion.

The “daily trading volume” is an indicator that measures the total amount of Bitcoin being transacted in the spot markets on any given day.

When the value of this metric is high, it means the market is active right now as investors are moving around a large number of coins on spot exchanges.

On the other hand, low volumes suggest the BTC spot market is inactive at the moment. Such values of the indicator, when persisting, can imply that the general interest around the crypto among traders is low currently.

Now, here is a chart that shows the trend in the 7-day average daily Bitcoin trading volumes over the past year:

The 7-day average value of the metric seems to have been going down in recent days | Source: Arcane Research's The Weekly Update - Week 40, 2022

As you can see in the above graph, the Bitcoin spot trading volume just recently witnessed a spell of high activity that lasted for many weeks, ultimately culminating in the metric setting a new yearly high last month.

However, since this high in September, the indicator has been going downhill, and has now reached a value of just $7.9 billion.

At the peak, this value was around $12.8 billion, meaning that the trading volume has gone down about 38% in just the last couple of weeks or so.

The likely reason behind this plunge is the relatively stale price movement that Bitcoin as well as the wider crypto market have suffered from during the period.

The report notes that market participants would be waiting for the crypto to show a clear direction before they show any significant trading activity.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.1k, down 5% in the last week. Over the past month, the crypto has lost 12% 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 continued to show mostly sideways movement in the last few days | Source: BTCUSD on TradingView

Bitcoin has been consolidating for several weeks now with the price trapped between the $19k and $20k levels, with only a couple of dips below the former mark. Currently, it’s unclear when this boring market might come to an end.

Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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