Why Did Bitcoin Trading Volume Drop?
As you can see in the chart above, Bitcoin trading volume surged a few years ago. It even came close to its highest level of the past year. However, after daily trading volume peaked to $9.2 billion on June 19, the volume began to show a sharp downward trend.
As of Monday, the trading volume of the spot market had already fallen to just $3.8 billion. That’s a 58.7% drop in just nine days.
The reason behind the short-lived rise in trading volume was the Bitcoin crash. A large number of traders then sold their BTC tokens. The fact that many investors have now exited, and there is still a lot of uncertainty in the market, has made investors a lot more cautious. This, in turn, has caused them to trade less, causing the trading volume to drop sharply.
It is expected that the volumes will only shoot up again if the Bitcoin price recovers, or if there is another huge price drop.
