Bitcoin Trading Volume Declines Amidst Global Economic Uncertainty
Bitcoin's stable price leads to fewer trades; global economic concerns deter potential investors.
Thu, 28 Sep 2023, 08:57 am UTC
Bitcoin has been trading within a consistent price bracket for months, leading to a noticeable drop in the number of transactions taking place. Analytics from CryptoQuant, monitoring both regular and futures trading platforms, underscores a significant fall in trading volume since Bitcoin began this steady phase in March.
Only a few months ago, in March, there was a daily transaction record of over 600,000. Contrastingly, recent statistics from the past seven days indicate daily transactions fluctuating between 8,000 and 15,000.
Caue Oliveira, a key analyst, believes this change in trend is largely due to global economic concerns. Oliveira explained that the uncertain moves of the U.S. Federal Reserve have left investors apprehensive about potential economic downturns. This year, the Federal Reserve has alternated between raising and maintaining interest rates, fostering an environment of strict financial regulation.
Additionally, Oliveira shared insights into Bitcoin owners' behavior. More and more are seeing the digital currency not as a quick way to profit, but as a sound long-term investment. Investors are keen to hold onto their Bitcoin, optimistic about its future value, rather than cashing in immediately. Recent statistics show that a large number of Bitcoin owners, especially those who've held the cryptocurrency for less than 155 days, have kept their investments despite them being valued lower than their purchasing price.
Yonsei_dent, another CryptoQuant analyst, further indicated that newer Bitcoin investors are more likely to engage in short-term buying and selling. He also presented data demonstrating Bitcoin's resistance and support levels based on the age of transactions.
Separately, public interest in Bitcoin seems to have waned. According to Google Trends, searches for "Bitcoin" have plummeted to their lowest since October 2020.
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