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- 1 The trading volume of the biggest cryptocurrency hit the lowest level during this month.
- 2 Bitcoin price is already seen struggling to keep up the pace as it dropped below $26K.
Bitcoin (BTC) price has been a concern for the past several weeks in the wake of a drop in its valuation. The price, however, is not the only parameter where the flagship cryptocurrency is losing ground. Recently, the trading volume of Bitcoin was reported to see the lowest point in the past half-decade.
CNBC reported that the fall in Bitcoin’s trading volume reached its lowest level in the last five years. BTC saw one of the tough phases during the ongoing month of August. In the same month, the price of major cryptocurrency dropped below $26K, the lowest trading price since March.
At the press time, Bitcoin price is trading at $25,953 losing over 10% of its value in the monthly time frame.
The trading volume, after considering both spot and derivatives exchanges, dropped enough that the total volume of BTC over the exchange platforms has been at the bottom since 2018.
CNBC reported citing CryptoQuant that the trading volume hit the recent low on August 12 when 112,317 Bitcoin reportedly traded across exchanges. While, as per the recent data, the volume saw a recovery and currently stalls at 129,307 BTC.
Several analysts have already pointed out the bleak condition of Bitcoin (BTC) in multiple crucial factors. The common belief is that it has been happening since the explosion of the crypto industry last year.
Trading volume, for instance, has been suffering on most exchanges since 2022 given that retail investors are fleeing in the wake of bearish sentiment, according to CryptoQuant research head, Julio Moreno. With the market moving ahead towards the bulls’ market, the trading volume would come back on track.
Crypto Analyst Affirms Bearish Sentiment in Bitcoin
Popular crypto analyst and trader Michael Van De Poppe talked about the market-wide negative sentiment given what he called “the longest bear market in history for Bitcoin.”
Van De Poppe noted that the crypto market’s recent sluggishness might evoke doubts about the return of a bullish phase. However, the skepticism stems from historical patterns, as Bitcoin tends to undergo cycles involving expansion, correction, accumulation, and renewed growth.
He stated that the current bear market mirrors the 2015 situation, characterized by sideways action and dwindling faith despite solid fundamental growth. Bitcoin’s price is far from its November 2021 peak, down over 50%, reflecting a 490-day bear market.
However, the analyst added that, despite slow price response to recent events, like institutional adoption, past experiences teach that after the “time capitulation,” growth tends to surprise. Lessons from this cycle will prove valuable in the future.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
