Bitcoin Trading Volumes Hit Lowest Level Since March 2019

Introduction

Bitcoin and other cryptocurrencies rose on Friday, but trading volumes remained low, indicating a lack of interest in the crypto space. The price of Bitcoin has gained 1.6% over the past 24 hours, crossing back above the $26,000 level. However, the spike to $28,000 last week was short-lived, with prices falling back to the $25,000 zone before recovering.

Low Trading Volumes

Bitcoin is currently experiencing a period of lateral trading with low trading volumes. The market seems to be waiting for a pivotal event to catalyze a decisive move. In the meantime, the horizontal trend is expected to persist. According to Rachel Lin, CEO of trading platform SynFutures, “We’re treading through another week of lateral trading, tinged with a bearish undertone.”

Bitcoin’s lack of excitement is similar to the Dow Jones Industrial Average and S&P 500 in the stock market, which have also experienced low volatility in recent months. This lack of action seems to be keeping traders away, with spot Bitcoin trading volumes in August sliding to their lowest levels since March 2019. Sacha Ghebali, a director at digital asset information group The Tie, stated, “There is paltry trading activity taking place right now. Retail demand seems rather low, as evidenced by the data showing low volumes on exchanges.”

Falling volumes bode ill for Bitcoin, which has historically risen on the back of retail investors flocking to the space for its volatility. Low volumes suggest a muted dynamic in markets, with prices failing to move much even on the back of macroeconomic and crypto-native catalysts that should cause meaningful swings.

Other Cryptocurrencies

Beyond Bitcoin, Ether—the second-largest crypto—rose less than 1% to $1,640. Smaller cryptos, or altcoins, were more mixed, with Cardano up less than 1% and Polygon slipping 3%. Memecoins were lower, with both Dogecoin and Shiba Inu down slightly.

Conclusion

The stagnant trading volumes in the crypto space are a cause for concern, indicating a lack of wider interest in cryptocurrencies. Bitcoin’s low trading volumes suggest a muted market dynamic, with prices failing to move significantly. This trend is similar to the low volatility experienced in the stock market. It remains to be seen whether a pivotal event will catalyze a decisive move in the crypto space.

For more information, contact Jack Denton at [email protected].