Bitcoin (BTC) exchanges have seen a significant drop in trading volume as traders cope with ongoing macroeconomic uncertainty.
according to According to new research released on September 25 by on-chain analysis platform CryptoQuant, daily BTC trading volume is at a rare low since 2018.
Fed warns Bitcoin investors of ‘possible recession’
Bitcoin’s price action has remained within familiar ranges for months, and trading interest appears to be waning as the year progresses.
Data from CryptoQuant, which tracks spot and derivatives exchange activity, highlights the extent of the decline in trading volumes since March when BTC/USD entered its current range.
Over the past week, daily spot trading volume has ranged from 8,000 to 15,000 transactions – a fraction of the standard daily volume in March (more than 600,000 transactions).
Special analyst Caue Oliveira believes that the main driving force behind this phenomenon is the macroeconomic environment.
“One of the main reasons cited was growing concerns about the macroeconomic situation,” he wrote in comments accompanying the data.
“The U.S. central bank’s actions have perpetuated uncertainty and left investors waiting for a possible recession.”
Oliveira mentioned the current economic policy in the United States, with the Federal Reserve swinging between raising interest rates and pausing them in 2023, while keeping overall conditions tight.
He went on to note that Bitcoin holders therefore choose to retain their Bitcoin capital.
He concluded: “More and more people are no longer looking for quick profits through short-term trading, but are viewing Bitcoin and other cryptocurrencies as long-term investments.”
“They are more interested in holding on to the token, believing in its future value, rather than selling at the first sign of profitability.”
Bitcoin Price Bulls Don’t Have Much Food to Eat
According to Cointelegraph, life has become difficult for Bitcoin speculators in recent weeks.
Related: Bitcoin price scrambles for $26,000 as dollar strengthens, hits 10-month high
Short-term holders – entities that hold Bitcoin for up to 155 days – are now holding funds at almost unrealized losses, with a cost basis above the current spot price.
in further Research This week, CryptoQuant contributor Yonsei_dent concluded that the cost base of various Bitcoin newbies will act as a “strong headwind.”
“Excluding long-term holding investors (12 million) + HODLers over the past 1.5 years, investors who have entered the market in the past year believe that they have a stronger tendency to buy and sell in the short term,” he warned.
The accompanying chart shows Unspent Translation Output (UTXO) numbers broken down by age range, forming resistance and support levels.
At the same time, external interest in Bitcoin exposure is also notably non-existent. Google Trends data shows that interest in “Bitcoin” as a search term has been lowest since October 2020.
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This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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