According to data source Barchart, Bitcoin spot volume has dropped to a startling 30-month low. The seven-day average is perilously perched on the verge of dropping below the $2 billion mark, a startling decline from the peak levels of $18 billion it reached in 2022 and late 2020.
According to CoinGecko statistics, the top three exchanges by spot trading volume are Binance, Coinbase, and LATOKEN, with 24-hour volumes ranging from over $600 million on Binance to $231 million on LATOKEN.
This fall occurs during a time when the volatility of the Bitcoin market is at an all-time low. Bollinger Bands, a crucial technical indicator that measures market volatility, have shrunk more tightly than ever before, suggesting less price movements.
This finding points to a time of calm for Bitcoin, a trend that Ethereum (ETH), the second-largest cryptocurrency by market size, is presently mirroring.
The rapid decline in bitcoin exchange balances is similar to what was experienced at the start of 2018. This pattern could point to a growing preference for long-term Bitcoin ownership over frequent trading, which might be a factor in the low volatility.
On the Bitstamp platform, the leading cryptocurrency is now trading at $29,278 after seeing a slight gain of 0.3% over the previous day. This is in the constrained $29,129 to $29,308 24-hour trading band, which denotes relatively little volatility. About $569 billion is the current market capitalisation of Bitcoin.
Despite the rush of exchange-traded fund (ETF) registrations by prominent companies like BlackRock, bitcoin trading activity is now exhibiting relatively anaemic features.
