Bitcoin cryptocurrency reaches its lowest trading levels in 5 years

In August 2023, bitcoin trading volume reached its lowest level in almost five years as investors wait for the right conditions to return to the market. CNBC analysts told more about this with reference to CryptoQuant data.

An analysis of spot and derivative exchanges shows that the total volume of BTC stored on all crypto exchanges decreased in early August this year to the lowest level since 2018.

On August 26, the trading volume on all crypto exchanges amounted to 129,000 BTC. on August 12, the trading volume fell to 112,000, the lowest since November 10, 2018. It is now about 94% lower than the March high of 3.5 million BTC, according to CryptoQuant data.

«Trading volumes decline in bear markets as retail investors withdraw. This happened in 2022 on most crypto exchanges. As we continue tomove towards a bull market, trading volume may continue to grow ,» said Julio Moreno, head of research at CryptoQuant.

The price of bitcoin has increased by 34.5% over the year and dropped by 6.6% over the month. At the time of writing, the market leader has grown significantly — by 5.5% and is trading at $ 27,430.

Cryptocurrency analyst Inmortal is convinced that bitcoin is preparing for the last downward movement before the start of a new bull market. As the expert told his 198,700 subscribers on the X platform, BTC is expected to make a corrective move to $ 20,000.

«The last fall in history ,» wrote Inmortal, convincing users that after a large-scale collapse, the market leader will not fall in price anymore. After a significant drop, bitcoin will reach $ 50,000, the analyst said. Inmortal believes that bitcoin is currently repeating the price dynamics of the last months of 2019, when the token broke below its support at around $ 10,000 and fell to $ 6,000.