The total volume of bitcoin in circulation is now writing at its lowest level since 2019 CNBCwhich refers to an analysis from CryptoQuant.
One bitcoin now costs just over $26,000, a price drop of just under 11 percent in the past month.
Volumes drop in a “bear market,” when regular investors pull out, explains CryptoQuant’s Giulio Moreno.
– This happened on most stock exchanges in 2022. As we move into the “bullish” market cycle, trading volume may continue to increase, he says as well.
On August 26, trading volumes were down 94 percent from their peak in March — from 3.5 million to 129,307 BTC. According to CNBC, investors are not eager to buy cryptocurrencies right now.
– This market is not necessarily “bearish”, but participants remain uninterested in trading while the market waits for catalysts, says Bernstein analyst Gautam Chogani.
Expect strong movements
One of the catalysts could be the outcome of the ruling between cryptocurrency fund Grayscale and the US Financial Conduct Authority (SEC). Grayscale sued the Securities and Exchange Commission in June last year, after the agency refused to list the fund as an ETF, i.e. a fund listed on an exchange.
When the decision comes, I expect strong moves in the bitcoin price, cryptocurrency expert Vitel Lundy told Finansavisen earlier in August.
The price of Bitcoin also fell sharply when it became known that SpaceX, controlled by Elon Musk, would sell its Bitcoin holdings by $373 million in 2022 and 2021, and later sell everything. The cryptocurrency fell 12 percent on the news.
However, so far this year, the bitcoin price is up nearly 60% — a long way from the peak of $68,000 in November 2021.
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