Bitcoin trading volume reaches lowest level since 2020, suggests analysis

In the report published at the terça-feira (23), K33 Research presented a worrying fact: the volume of Bitcoin negotiations dropped to its lowest level since 2020.

Excluding the volume of sales from Binance, due to a recent tax zero promotion, the numbers are still lower. No entanto, K33 highlights that this would be the “real volume” of Bitcoin.

Indo Alemán, o estudo también apontou que o Bitcoin está pretty estável. Its price is around US$ 27,000 for the fifth week in a row after the touros falharem in a recent investment.

Bitcoin without liquidity worries market

After or price, or volume is the main metric analyzed by investors. In the end, it helps to show or interest in a certain asset. In the case of Bitcoin, K33 Research suggests that dice are not good.

“The 7-day average trading volumes have reached a 2.5-year low, the 30-day volatility is at a minimum not seen since January 11 and trading activity has decreased in [contratos] perpetual, raising the interest open to fully stabilize in the past week.”

Volume of Bitcoin trading in brokerages. Source: K33 Research.

However, removing the volume of Binance, it is possible to see a large volume left as of November 2022, when the FTX brokerage declared bankruptcy.

While in blue, showing just Binance dice, I also notice a large drop in volume after the brokerage returned to collect trading fees in March of this year.

Bitcoin volatility is also low

Embora a lack of volume is synonymous with lack of liquidity, making large purchases or sales will cause sudden movements in the market, we are selling or opposed to happen.

“Or Bitcoin is still being traded in the price of S$ 27,000 for the fifth consecutive third fair”, he commented to K33, citing a failure to break the resistance. Secondly, the analysis company also comments that this is a lower level since the beginning of January, before BTC started its rally.

Bitcoin volatility. Source: K33 Research.

Regarding the gain and fear index, K33 indicates that we return to the “neutral” moment. In the past, investors were feeling “profit”.

Generally, this metric has an opposite correlation. Ou seja, while extreme profit can indicate sales opportunities, extreme medio can indicate moments to make contributions.

Also analyze other points related to Bitcoin

Finally, the K33 Research report also analyzed the correlation between Bitcoin and Nasdaq stocks, suggesting a reduction also in this metric, to the lowest two last 17 months.

The contributions of Tether, the company behind the stablecoin USDT, in Bitcoin are also another topic debated. According to K33, these purchases would represent 6% of the daily issuance of BTC, which could double to 12% with the halving of 2024.

The complete report, dated May 23, may be found no site from K33 Research.


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