Bitcoin Trading Volume Plummets Down From Recent Top
May 25 2022 - 3:00PM
NEWSBTC
Data shows the Bitcoin spot trading volume has once again come back
down to normal values for 2022 after the big surge recently.
Bitcoin Trading Volume Falls Back Down To Values Around $4 Billion
As per the latest weekly report from Arcane Research, the Bitcoin
trading volume has plummeted back down after the recent high
values. The “daily spot trading volume” is an indicator that
measures the total amount of Bitcoin moving on the chain on any
given day. When the value of this metric goes up, it means the
number of coins changing hands on the network is increasing. Such a
trend can be a sign that interest around the crypto among investors
is rising right now. On the other hand, a downtrend in the volume
would suggest that market activity is going down. This trend may
imply that the general interest around the crypto could be
diminishing. Historically, high values of the indicator have
provided for a favorable environment to push large moves in the
price of Bitcoin. Related Reading | Investors May Expect
Downside For Bitcoin And Ethereum Market For The Next 3 Months The
reason behind this is that to sustain any such move, a large number
of active traders are needed (which high volumes correspond to).
Now, here is a chart that shows the trend in the Bitcoin trading
volume (7-day average) over the past year: Looks like the value of
the metric has plunged down recently | Source: Arcane Research's
The Weekly Update - Week 20, 2022 As you can see in the above
graph, the Bitcoin trading volume had sharply jumped up to high
values just below $10 billion recently. These were highs not
observed since May of last year. However, the indicator’s value has
already plummeted down, clocking just about $4 billion now. This
value is more in line with the normal for the year 2022 so far, but
is still a low value historically, as has been the case during the
rest of the year. Related Reading | Bitcoin, Ethereum Exchange
Inflows Suggest Sell-Offs Are Far From Over The report notes that
this sharp turn in the trading volume shows how fast the market
activity can swing for Bitcoin. Generally, during periods of low
activity, the price of the crypto has tended to run sideways. So,
considering the current values, a similar outcome may follow for
the coin now as well. BTC Price At the time of writing, Bitcoin’s
price floats around $29.5k, down 1% in the past week. Over the last
month, the crypto has lost 25% in value. The below chart shows the
trend in the price of the coin over the last five days. It seems
like the price of BTC has continued to move sideways over the last
few days | Source: BTCUSD on TradingView Featured image from
Unsplash.com, charts from TradingView.com, Arcane Research
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