Data shows the Bitcoin trading volume has plunged to a 3-month low as renewed market volatility due to the FTX fiasco fades away.
Bitcoin 7-Day Average Trading Volume Has Plummeted This Week
As per the latest weekly report from Arcane Research, the activity in the BTC market has slowed down recently.
The “daily trading volume” is an indicator that measures the total amount of Bitcoin being traded on the Bitwise 10 exchanges every day.
While the Bitwise 10 exchanges don’t make up the entire market, they still provide a decent approximation for activity across the spot exchanges.
When the value of the trading volume is high, it means investors are moving around large amounts on spot markets currently. Such a trend shows traders are active right now.
On the other hand, low values of the metric suggest there isn’t much activity going on in exchanges at the moment. This could be a sign that interest around the crypto is low currently.
Now, here is a chart that shows the trend in the 7-day average Bitcoin daily trading volume over the past year:
As you can see in the above graph, the 7-day average Bitcoin trading volume had been at yearly highs just a little while ago.
This high activity on spot markets was caused by the collapse of crypto exchange FTX, which caused rush among investors to make some moves.
The BTC volatility had also shot up in the same period as the price of the crypto observed a deep crash.
In the last week, however, both the previously high activity and the volatility have dwindled down as the market has stabilized a bit.
Amid this calm market, the weekly average Bitcoin trading volumes have now plunged to lows not seen since around three months ago.
BTC Price
At the time of writing, Bitcoin’s price floats around $16.5k, down 1% in the last week. Over the past month, the crypto has lost 14% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
Bitcoin had plunged below $16k just a couple of days back, but over the last day or so the crypto’s price has already made a recovery above the $16.5k mark.
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Arcane Research
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