Bitcoin Trading Volume Sharply Drops Off In The Past Week
As per the latest weekly report from , the BTC 7-day average trading volume has significantly reduced recently.The “trading volume” is an indicator that measures the total amount of Bitcoin transacted on the chain during a particular period.
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In the past, there have been instances where the price of Bitcoin seemed to be sharply moving towards a direction, but the chain data didn’t show any corresponding trading activity. Such moves usually died down after some time. For example, when BTC made an all-time high (ATH), the volume still remained low.
Now, here is a chart that highlights the trend in the value of the BTC trading volume over the past year:Looks like the value of the indicator has recently plunged down | Source:As the above graph shows, the Bitcoin trading volume saw a massive uptick earlier in the month due to the 4th Dec crash. However, in the past week, the indicator’s value has dropped off by almost 40% as the market calms down.
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Since August, the trading volume seems to have plateaued around the $5 billion mark, with occasional upticks to about $10 billion during the periods of high volatility. The trading volume calming down can mean Bitcoin’s recent downtrend might be starting to diminish. This is because, as explained before, high values of the indicator are needed to keep such moves going.BTC Price
At the time of writing, Bitcoin’s price floats around $47.7k, down 3% in the last seven days. The below chart shows the trend in the price of BTC over the past five days:
BTC's price has continued to drop off in the past few days | Source:
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research