Bitcoin trading volume down to 3-month low as FTX volatility eases
Data shows that Bitcoin trading volume has plunged to a 3-month low as renewed market volatility due to the FTX fiasco dissipates.
Bitcoin 7-day average trading volume has plunged this week
According to the latest weekly report from Arcane Research, activity in the BTC market has slowed recently.
“Daily Trade Volume” is an indicator that measures the total amount of Bitcoin traded on the Bitwise 10 exchanges each day.
While the Bitwise 10 exchanges do not make up the entire market, they still provide a decent approximation of activity across the spot exchanges.
When the value of the trading volume is high, it means that investors are moving around large amounts in spot markets at the moment. Such a trend shows that traders are active right now.
On the other hand, low values of the metric suggest that there is not much activity going on in the exchanges at the moment. This could be a sign that interest around the crypto is currently low.
Now, here is a chart showing the trend of the 7-day average daily trading volume for Bitcoin over the past year:
The weekly average value of the metric seems to have gone down in recent days | Source: Arcane Research's Ahead of the Curve - November 22
As you can see in the graph above, the 7-day average Bitcoin trading volume had been at yearly highs just a little while ago.
This high activity in the spot markets was caused by the collapse of the crypto exchange FTX, which caused investors to rush.
BTC volatility had also shot up during the same period as the price of the crypto observed a deep crash.
In the past week, however, both the previously high activity and volatility have subsided as the market has stabilized somewhat.
Amidst this calm market, the weekly average Bitcoin trading volumes have now plunged to lowest levels not seen since around three months ago.
BTC price
At the time of writing, Bitcoin’s price is hovering around $16.5k, down 1% in the last week. Over the past month, the crypto has lost 14% in value.
Below is a chart showing the trend in the price of the coin over the last five days.
Looks like the the value of the crypto has surged up during the past day | Source: BTCUSD on TradingView
Bitcoin had dipped below $16,000 just a couple of days ago, but in the last day or so, the crypto price has already recovered above $16,5000.
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Arcane Research
