Bitcoin's spot volume has plunged to a shocking 30-month low, according to data provider Barchart. The seven-day average is hovering precariously close to falling below the $2 billion threshold, an astonishing fall from the heights of $18 billion at its peak in 2022 and late 2020.
Top exchanges by spot trading volume include Binance, Coinbase and LATOKEN, with 24-hour volumes ranging from over $600 million on Binance to $231 million on LATOKEN, according to CoinGecko data.
This decline comes amid a period of extremely low volatility within the Bitcoin market. The key technical indicator, Bollinger Bands, which tracks price volatility, has contracted tighter than ever before, hinting at reduced price fluctuations.This observation indicates a period of tranquility for Bitcoin, a phenomenon that is currently being mirrored by Ethereum (ETH), the second largest cryptocurrency by market cap.
Bitcoin exchange balances have also seen a sharp drop, reminiscent of levels witnessed at the beginning of 2018. This trend may suggest an increasing preference for long-term Bitcoin holding rather than frequent trading, potentially contributing to the subdued volatility.
The flagship cryptocurrency is changing hands at $29,278 on the Bitstamp exchange after logging a marginal increase of 0.3% over the last 24 hours. This is within a narrow 24-hour trading range of $29,129 to $29,308, which indicates relatively low volatility. The total market capitalization of Bitcoin stands at approximately $569 billion.
Bitcoin's trading activity is currently showing highly anemic characteristics despite the flurry of exchange-traded fund (ETF) filings by major firms of the likes of BlackRock.