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Data shows that Bitcoin trading volume is down 38% since its September highs due to the dull price action in the crypto.
Bitcoin Spot’s trading volume has fallen in recent days
According to the latest weekly report from mysterious investigationthe current 7-day average BTC spot volumes have fallen to only about $7.9 billion.
the “daily trading volume” is an indicator that measures the total amount of Bitcoin traded in the spot markets on a given day.
When the value of this metric is high, it means that the market is now active as investors move a large number of coins on spot exchanges.
On the other hand, low volumes suggest that the BTC spot market is currently inactive. Such values of the indicator, when sustained, could imply that the general interest around the crypto among traders is currently low.
Here is a chart showing the trend in the 7-day average daily Bitcoin trading volumes over the past year:
The 7-day average value of the metric seems to have been going down in recent days | Source: Arcane Research's The Weekly Update - Week 40, 2022
As you can see in the chart above, Bitcoin spot trading volume recently witnessed a period of high activity that lasted for many weeks, eventually culminating in the metric setting of a new annual record last month.
However, since this September high, the indicator has gone downhill and has now reached a value of just $7.9 billion.
At its peak, this value was about $12.8 billion, meaning trading volume has fallen by about 38% over the past few weeks.
The likely reason behind this dive is the relatively low stale price movement which both Bitcoin and the broader crypto market suffered over the period.
The report notes that market participants would wait for the crypto to show a clear direction before showing any significant trading activity.
At the moment of writing, The price of Bitcoin hovers around $19.1k, down 5% over the past week. Over the past month, the crypto has fallen 12% in value.
The chart below shows the trend in the price of the coin over the past five days.
Looks like the value of the crypto has continued to show mostly sideways movement in the last few days | Source: BTCUSD on TradingView
Bitcoin has been consolidating for several weeks now with the price between $19k and $20k, with only a few dips below the former mark. At this point, it is unclear when this dull market will come to an end.
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research