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Bitcoin’s trading volume hit its lowest level in almost five years this month as investors keep waiting for reasons to jump back into the market.
An analysis of CryptoQuant data from both spot and derivatives exchanges shows the total volume of bitcoin held on all exchanges fell earlier this month to its lowest level since 2018 and has struggled to rebound.
As of Aug. 26, bitcoin trading volume on all exchanges sat at 129,307 BTC, according to CryptoQuant. Earlier in the month, on Aug. 12, it fell to 112,317 BTC, its lowest level since Nov. 10, 2018. It’s now off the March high of 3.5 million BTC by about 94%.
“Trading volumes decrease in bear markets as retail investors leave,” Julio Moreno, head of research at CryptoQuant, told CNBC. “This happened during 2022 on most exchanges. As we progress further into a bull market, the trading volume may continue to pick up.”
The price of bitcoin is still up 57% for the year and hovering at about $26,100, according to Coin Metrics.
It’s been an excruciatingly quiet summer for bitcoin traders, but…