Bitcoin Trading Volume Has Stayed Low In Recent Weeks
According to the latest weekly report from , the BTC trading volume has sunk down to July lows recently.The “trading volume” is an indicator that measures the total amount of Bitcoin being transacted on the chain in a day.
The indicator's value seems to have been at low values recently | Source:As you can see in the above graph, the daily Bitcoin spot trading volume has struggled a lot recently, and has declined to 7-day average values of around just $3 billion.
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Bitcoin Price Surges Above $42k, Can It Revive The Volume?
Usually, periods of high trading volumes have been when the price of BTC has successfully made some large moves. It’s because to sustain any such move, the market needs a high number of active traders.Related Reading | Calm Before The Storm: Bitcoin Volatility Reaches Pre-Bull Breakout Levels
But it’s also true that any large price move attracts more investors to the market, thus raising the volume. In cases when it doesn’t happen, the rally generally dies down before too long.Today, Bitcoin’s price has crossed above the $42k mark again after plunging down below the $39k level just a few days back. The below chart shows the trend.
The value of BTC seems to have shot up over the last couple of days | Source:
It’s possible that this new surge may be able to revive the volume a little. However, it’s also true that there have been a few instances this year already where a rise in the price wasn’t accompanied by a spike in the volume. It now remains to be seen which scenario will play out this time.
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research