Bitcoin Spot Trading Volume Continues To Decline This Week
When the value of this indicator goes up, it means more coins are now changing hands. This trend shows that the network is becoming more active.
Usually, high volumes make up for an ideal environment for pushing any big price moves. This is because for sustaining such movements, you require a large amount of traders involved in the market. Which is precisely what high values of the metric represent.
Related Reading | Data: Bitcoin Long-Term Holder Supply Has Stagnated Since October High
Now, here is a chart that shows the trend in the BTC Trading Volume over the past year:
The indicator's value seems to have been declining recently | Source: Arcane Research's The Weekly Update - Week 11, 2022
As you can see in the above graph, the Bitcoin daily volume has been on the decline for a while now. Over the past seven days, this downtrend looks to have continued.
The 7-day average spot volume is currently around just $4 billion. In the last week, the metric’s value has surged to $7 billion on only a single day.
Price activity usually revives the indicator as it attracts more traders. However, market activity has been rather declining recently, despite the value of Bitcoin observing some sharp upliftment over the past couple of days.
A lack of traders means that it’s unlikely this rally would be able to march any further. Just like much of the recent trend, the coin’s price may start consolidating now instead of catching any real movement.
The below chart shows the trend in the price of the coin over the last five days.
Looks like the price of BTC broke past the $43k mark yesterday | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research