Bitcoin (Bitcoin) Spot volume has continued to capitulate in recent weeks, returning to the level seen in October 2023.
As of April 29, bitcoin spot volume, which represents the total value of BTC traded on exchanges at the current market price, across major cryptocurrency exchanges, has fallen below $5 billion, according to Metrics from Vitreous node.
The sharp decline in market participation continued in April, despite a moderate recovery in Bitcoin prices. Investor appetite for spot Bitcoin has declined recently amid the prevailing macroeconomic backdrop, which has been exacerbated by the geopolitical crisis.
Over the past month, Binance, the largest cryptocurrency exchange by trading volume, has fallen by about $25 billion, based on… Data from Cryptoquant. Meanwhile, Gate.io and OKX recorded a decline in Bitcoin spot volume of $13 billion and $6 billion, respectively.
What’s next for Bitcoin price amid record low trading volume?
A significant decline in Bitcoin spot volume indicates a decline in market depth, a measure of liquidity. As such, Bitcoin’s price remains highly sensitive to any shift in spot market flows.
In the past two days, BlackRock’s iShares Bitcoin Trust (NASDAQ: He will go) led Bitcoin exchange-traded funds (ETFs) and other US institutional investors into renewed selling pressure, such as Finbold I mentioned. As US investors accelerate Bitcoin distribution amid notable inflows to cryptocurrency exchanges, such as Finbold maleThe bearish sentiment remains evident.
Amid falling spot volume, Bitcoin’s price has fallen 4.90% over the past seven days, trading at around $75,150 at press time. If institutional investors continue to sell amid falling spot volume, further declines in Bitcoin prices in May may be inevitable, and vice versa.
