Bitcoin’s price has found itself trapped beneath the $27,000 mark amidst a significant decline in spot trading volumes that hit a 6-year bottom.
This substantial slump in spot trading activity can be attributed to the growing fear surrounding the macroeconomic landscape. However, this downward trend in spot trading has an interesting side, according to CryptoQuant.
- Recent data from CryptoQuant reveals that the weekly transaction volume has been oscillating between a mere 8,000 to 15,000 daily transactions, a stark contrast to the over 600,000 transactions witnessed in March of the same year.
- Bitcoin’s price growth is being restricted by falling market liquidity, which poses a precarious situation for the flagship crypto-asset as derivatives trading volume followed a similar suit with a 73% drawdown since March 2023.
- Despite a severe market slowdown, Bitcoin traders are not hastily cashing out at the earliest opportunity for profit.
- In fact, the downtrend in spot trading demonstrated an increase in interest in “hodling” or holding currencies for the long term rather than trading them.
- According to the latest analysis, rather than chasing swift gains through short-term trading, an increasing number of market players are now viewing bitcoin and other cryptocurrencies as “long-term investments.”
- CryptoQuant found that these holders express a greater inclination to retain their coins, “believing in their future value.”
- Such a sentiment can prove to be a major catalyst in price trajectory.
- To top that, MicroStrategy’s latest BTC purchase can further help in a potential bullish turnaround.
