Bitcoin trading drops to lowest level in history; What it means for BTC price

As the period of stagnation continues to pressure the majority of assets in the cryptocurrency market, Bitcoin (BTC) at below $29,000 is no exception, and the flagship decentralized finance (DeFi) asset is also recording the lowest trading volume in recorded history.

Indeed, the monthly trading volume of Bitcoin on major crypto exchanges has recently plummeted to its lowest level on the five-year chart, according to the latest information retrieved from the Bitcoin analytics platform Bitcoinity on August 17.

As it happens, in the last 30 days, the trading volume of the maiden cryptocurrency totaled 386,423.1 BTC or roughly $11 billion based on the current price of Bitcoin, which at press time stood at around $28,547, while the 24-hour volume reached 16,583,613,023 BTC, as the most recent charts indicate.

What this means

According to the analysis by X user WhaleWire, such a low trading volume for the largest crypto asset by market capitalization has several implications, including waning investor interest, new volatility risks, and the possibility of stagnation.

Furthermore, the analyst explained that the reduced trading activity could lead to a decreased ease of buying and selling Bitcoin at market price, as well as creating an environment of increased likelihood for price manipulation and shaken market confidence.

Bitcoin price analysis

Meanwhile, the current price of Bitcoin indicates a decline of 2.1% in the last 24 hours, a 3.22% loss across the previous seven days, adding up to the 5.01% drop on its monthly chart, according to the latest data retrieved by Finbold on August 17.

All things considered, the low trading volume could, indeed, trigger the start or help continue the above indicators and ultimately lead to more bearishness for Bitcoin and further declines in its price, at least in the short term, whereas multiple analysts predict new all-time highs (ATHs).

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.