Bitcoin trading volume outside Binance drops to lowest since February 2021
Data shows that Bitcoin spot trading volume outside of Binance has fallen to its lowest value since February 2021.
Bitcoin trading volume continues to fall as the market calms down
According to the latest weekly report from Arcane Research, the volume including Binance is still at a high level right now.
The “trade volume” here is an indicator that measures the total amount of Bitcoin moved on the Bitwise 10 exchanges during a day.
Although the Bitwise 10 exchanges do not make up the entire spot market, the volumes on them still provide a reliable approximation of trends across the sector.
When the value of the trading volume is high, it means that investors are taking part in large amounts of trades on exchanges right now. Such a trend suggests that the market is currently active.
On the other hand, low values mean that holders are not showing much activity right now. This kind of trend could indicate that the general interest around BTC among traders is currently low.
Now, here’s a chart showing the trend in 7-day average Bitcoin trading volume over the past year:
Looks like the 7-day average value of the metric has declined in recent days | Source: Arcane Research's Ahead of the Curve - November 29
As you can see in the graph above, the 7-day average daily trading volume for Bitcoin rose sharply and peaked earlier in the month as a result of the FTX collapse.
After the volatility of the crash calmed down, volumes quickly began to fall and have since continued to decline.
The chart shows the values of the metric for Binance and for the rest of the spot exchanges separately; The reason behind it is the removal of fees on the platform for BTC trading pairs, which has led the exchange to observe a lot of wash trading.
From the graph it is clear that the volumes in the rest of the market have now fallen to quite low values. In fact, current levels are the lowest since February 2021.
However, activity on Binance remains at significant levels. Although, the report notes “the 7-day average trading volumes have only been lower once since Binance removed trading fees for its BTC pairs.”
The current low values of Bitcoin trading volume suggest that market activity has been muted while BTC’s price has not seen much movement.
BTC price
At the time of writing, Bitcoin’s price is hovering around $16.8k, up 2% in the last week.
BTC seems to have seen some surge in the last couple of days | Source: BTCUSD on TradingView
Featured image from Maxim Hopman on Unsplash.com, charts from TradingView.com, Arcane Research
