As Bitcoin struggles to rise above $30,000, its trading volume has fallen to its lowest level in the last two and a half years.
According to data from K33 Research, a cryptocurrency analysis firm, the average seven-day Bitcoin spot trading volume this week was at its lowest level since early 2021, when the coin was trading below $10,000.
The low trading volume reflects the lack of price action in the crypto market, which has been stuck in a tight range for weeks.
“The crypto market is currently in a real summer sleep,” Bendik Schei, Director of Research at K33 Research, and Senior Analyst Vetle Lunde wrote in a note.
“However, long periods of recession tend to be followed by increased volatility by over-leveraged traders conditioned to a low-volatility environment.”
Analysts added that Bitcoin activity could increase in August and September as regulators decide whether to approve the first Bitcoin exchange-traded fund (ETF) in the United States.
Caroline Mauron, co-founder of digital asset derivatives liquidity provider OrBit Markets, said, “We are seeing increased interest from investors, who are driven by whether the BTC price is overvalued or undervalued, to take a position for a larger move towards the end of the third quarter.”
“A positive result from the SEC could trigger a significant rally in Bitcoin and the overall crypto market.”
*Not investment advice.
