The data shows Bitcoin trading volume plunged to a 3-month low as renewed market volatility from the FTX fiasco fades.
Bitcoin’s 7-day average trading volume fell this week
According to the latest weekly report from Arcane Researchactivity in the BTC market has slowed recently.
There “daily trading volumeis an indicator that measures the total amount of Bitcoin traded on Bitwise 10 exchanges each day.
Although the Bitwise 10 exchanges are not the entire market, they still provide a decent approximation of activity on spot exchanges.
When the value of trading volume is high, it means that investors are currently moving large amounts in the spot markets. Such a trend shows that traders are active at the moment.
On the other hand, the low values of the metric suggest that there is not much activity going on in the exchanges at the moment. This could be a sign that interest around crypto is currently low.
Now, here is a chart that shows the trend of Bitcoin’s 7-day average daily trading volume over the past year:
The weekly average value of the metric seems to have gone down in recent days | Source: Arcane Research's Ahead of the Curve - November 22
As you can see in the chart above, Bitcoin’s 7-day average trading volume had reached yearly highs not long ago.
This high activity in spot markets was caused by the collapse of crypto exchange FTX, which prompted investors to take action.
The BTC volatility had also soared during the same period as the price of the crypto witnessed a deep crash.
Over the past week, however, the previously high activity and volatility has subsided as the market has stabilized somewhat.
Amid this quiet market, average weekly Bitcoin trading volumes have now plunged to levels not seen in about three months.
At the time of writing, The price of bitcoin is floating around $16,500, down 1% in the past week. Over the past month, the crypto has lost 14% in value.
Below is a chart that shows the price trend of the coin over the past five days.
Looks like the the value of the crypto has surged up during the past day | Source: BTCUSD on TradingView
Bitcoin had dipped below $16,000 just a few days ago, but in the past day the price of the crypto has already rallied above the $16.5,000 mark.
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, Arcane Research