April 23, 2024

Copy-paste | Should I panic due to falling trading volumes of BTC?

BTC trading volumes on major exchanges have been falling recently. In light of the decline in traders' activity, oneThe cryptocurrency market analyst called the situation on the market “difficult”.

eToro Chief Market Analyst Mati Greenspan(@MatiGreenspan) today published a post on Twitter, in which he pointed out a significant decrease in Bitcoin trading volumes on key platforms. In his publication, the expert especially noted the deterioration in performance on the ten largest exchanges, weak trading volumes on the Bakkt platform after the launch of deliverable futures contracts for Bitcoin and on the Local Bitcoins platform.

Fall in trading volumes

According to data published by Messari Crypto,daily trading volumes on the ten largest cryptocurrency exchanges are less than $ 190.5 million. At the same time, the real trading volumes of Tether significantly exceed the activity of bitcoin trading, despite the contradictions around the token, and reach almost $ 530 million. At the same time, the analyst reminds subscribers that during the peak period earlier this year, bitcoin trading volumes often exceeded $ 54 billion.

Messari Crypto data based on statisticsexchanges indicated in the Bitwise report. But, as you know, many trading platforms presumably greatly exaggerate trading volumes in order to increase their attractiveness in the eyes of developers of altcoin projects, since depending on the size of the indicator of trading volumes, they may charge a higher commission for listing.

Another signal of falling trading volumesThe dynamics of the recently launched physical futures contracts for bitcon on the Bakkt site, which turned out to be much less popular, is what many hoped.

Trading activity is also declining at LocalBitcoins, where the lowest rates since August 2017 were recorded.
Copy-paste | Should I panic due to falling trading volumes of BTC?

Bitcoin's positive outlook

Despite the worsening trading statisticsvolumes, Greenspan expresses particular concern about the prospects for BTC. The analyst emphasizes that low activity on BitMEX is a sign of short-term speculators leaving the market, which, in fact, is not bad after the crazy start of the year.

Another positive factor for the future of bitcoin- The cryptocurrency hashrate, because now computer power has reached unprecedented levels, and this already speaks of the confidence of miners in the future of digital currency.

Despite the decline in trading volumes on severalThe largest sites, Bitcoin remains in the group of the strongest assets of 2019. Greenspan notes that such stability is encouraging after the explosive start of the year, when the token soared from $ 4,000 to almost $ 14,000 in just a few months.

Analyzing all this data, the analyst says that Bitcoin is not dying, but simply took a breather.

What do you think about the drop in trading volumes? Does this signal a decline in interest in Bitcoin, or is it just a respite before a new surge upward? Share your opinion in the comments.

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