News
Bitcoin records transaction volume at historic lows, spot trading vanishes
As of February 2024, Bitcoin (Bitcoin) traded in a price range of $60,000 to $72,000, with two deviations. This created mostly neutral momentum for the leaders cryptocurrencywhich now sees its trading and transaction volume vanish.
Finbold recovered data from Santiment on June 2 showing both metrics with the price of BTC, currently at $68,100. Notably, seven-day trading volume plummeted below $14 billion, the same level as in 2023, when Bitcoin was trading below $30,000.
Additionally, the chart highlights a lack of interest in Bitcoin trading and on-chain transaction volumes, with the latter noticeably low. As noted, the network saw only 722,000 BTC moved in seven days. This contrasts with 1.79 million BTC in October 2023, with similar trading volume and half the price.
BTC year-over-year chart: price, trading volume, transaction volume. Source: Santiment / Finbold (Vini Barbosa, Sanbase Pro)
If we zoom out on the graph, Bitcoin’s current on-chain transaction volume shows its lowest value since inception. This highlights remarkably low network activity, which has not tracked the increase in demand for speculative BTC over the years.
Volume of Bitcoin ETFs and derivatives
Meanwhile, this year it was approved Spot Bitcoin ETF they earned $1.73 billion, second data retrieved from IntoTheBlock and Yahoo. Overall, these ETFsVolume over the last seven trading days stood at $12 billion, similar to BTC’s spot volume cryptocurrency exchanges.
This suggests growing interest in regulated and custodial securities trading exchange-traded funds instead of Bitcoin itself.
THE derivatives The volume also highlights the growing interest in purely speculative demand for the leading cryptocurrency. Data from CoinGlass shows daily volume exceeding $34 billion, nearly three times the seven-day volume for spot trading.
Notably, the traded volume of futures contracts and other financial products derived from Bitcoin has remained stable after peaking in March 2024.
In conclusion, these indicators suggest greater market interest in speculating on BTC prices through Bitcoin ETFs and derivatives. This is contrary to acquiring Bitcoin for self-custody or long-term holding by cryptocurrency exchanges, or using blockchain without permission for real peer-to-peer transactions.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.