Report: Bitcoin trading volume falls to its lowest since October 2020

Trading volume of Bitcoin on centralized platforms in August was the lowest since October 2020, at $423 billion. Bitfinex analysts note this in a report.

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\”Trading volume has been steadily declining across all fronts for several months,\” the document says.

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Experts say this signals a loss of confidence in Bitcoin and the broader crypto-asset sector.

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A low-liquidity environment makes the market for digital assets susceptible to substantial price swings even with modest trading volumes, the experts noted.

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The driving force was the derivatives market, whose turnover at times was 20 times higher than spot values on centralized platforms (CEX).

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Analysts noted rising investor pessimism and the need for a new catalyst to restore positive market conditions.

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They noted that news around the position SEC regarding ETF began to exert a less pronounced influence on market prices, while U.S. macroeconomic data triggered a more sensitive reaction.

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Total trading volume across cryptocurrency exchanges for April–June fell to its lowest since Q4 2020, according to Kaiko.