Data shows the Bitcoin spot trading volume outside Binance has fallen to its lowest value since the February of 2021.
Bitcoin Trading Volume Continues To Tumble As Market Calms Down
As per the latest weekly report from Arcane Research, volume including Binance is still at a high level right now.
The “trading volume” here is an indicator that measures the total amount of Bitcoin moved on the Bitwise 10 exchanges in a day.
While the Bitwise 10 exchanges don’t make up the entire spot market, volumes on them still provide a reliable approximation for trends in the entire sector.
When the value of the trading volume is high, it means investors are taking part in large amounts of trades on exchanges right now. Such a trend suggests the market is active currently.
On the other hand, low values imply holders aren’t showing much activity right now. This kind of trend can suggest the general interest around BTC among traders is low at the moment.
Now, here is a chart that shows the trend in the 7-day average Bitcoin trading volume over the past year:
Looks like the 7-day average value of the metric has declined in recent days | Source: Arcane Research's Ahead of the Curve - November 29
As you can see in the above graph, the 7-day average Bitcoin daily trading volume sharply rose and hit a peak earlier in the month as a result of the FTX collapse.
After the volatility of the crash calmed down, the volumes quickly started to drop off and have since continued to go down.
The chart shows the values of the metric for Binance and for the rest of the spot exchanges separately; the reason behind that is the fee removal on the platform for BTC trading pairs, which has lead to the exchange observing a lot of wash trading.
From the graph, it’s apparent that the volumes in the rest of the market have now declined to pretty low values. In fact, the current levels are the lowest since February 2021.
Activity on Binance, however, still remains at significant levels. Though, the report notes “the 7-day average trading volumes have only been lower once since Binance removed trading fees for its BTC pairs.”
The current low values of the Bitcoin trading volume suggest that market activity has remained muted while BTC’s price hasn’t seen much movement.
At the time of writing, Bitcoin’s price floats around $16.8k, up 2% in the last week.
BTC seems to have seen some surge in the last couple of days | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, Arcane Research