Retail and institutional interest in Bitcoin has continued to weaken as its trading activity continues to plunge amid consistent market volatility.
While Bitcoin's price has also continued to struggle amid the unstable market conditions, the latest data from crypto analytics platform CryptoQuant shows that Bitcoin spot trading volumes across major crypto exchanges have fallen by over 75% from their late-2024 peak.
Bitcoin volume hits four-year low
Despite the modest price recovery seen in July, trading activity for the month still shows weak investor interest as participation in the Bitcoin market remains substantially low.
The slowdown in Bitcoin trading activity spans across all major exchanges, with Binance recording one of the deepest plunges.
In July, the world's largest crypto exchange, Binance, recorded $5 billion in Bitcoin spot volume despite the recovery seen during the month. The volume marks a sharp decline from the $246 billion recorded in November 2024.
It is important to note that the declined market interest is not limited to Binance; Bybit, Coinbase, and OKX also saw significant decreases in the metric as Bitcoin spot volumes on those exchanges fell by 85%, 61%, and 67% during the same period, respectively.
What's behind it?
While the prolonged decline in Bitcoin spot volume has become increasingly concerning, market analysts believe it could be attributed to macroeconomic pressures that have reduced investors' appetite for risk assets.
As such, they have predicted that the slow Bitcoin trading activity across exchanges is unlikely to see any major recovery without a substantial improvement in macroeconomic conditions.
Dan Burgin
U.Today Editorial Team
