Volume Spot hits the bottom – Has the market already reached the bottom? #5PC
For those who don’t follow closely: Spot Volume on CEX exchanges recently has fallen to a record low level. The weekly average is only around 50 billion.
This volume level is on par with the period from March to September 2023—when Bitcoin was only moving in the 20–30k USD range. Meanwhile, BTC is currently still holding around 63–65k.
There are three main reasons that can explain this phenomenon:
+ Crypto trading demand has dropped sharply. Fewer new projects launch, older projects can’t create momentum, and there isn’t enough compelling narrative to pull in capital.
+ Capital has flowed into traditional assets. US stocks, gold, and oil are swinging strongly, drawing all investor attention.
+ Almost no new inflow of funds. Retail has almost disappeared. Institutions are focusing on new product lines that haven’t been tokenized yet, or don’t need to issue a token.
Low volume isn’t always bad. History shows that these kinds of “hibernation” phases are often an opportunity to accumulate.
For those who don’t follow closely: Spot Volume on CEX exchanges recently has fallen to a record low level. The weekly average is only around 50 billion.
This volume level is on par with the period from March to September 2023—when Bitcoin was only moving in the 20–30k USD range. Meanwhile, BTC is currently still holding around 63–65k.
There are three main reasons that can explain this phenomenon:
+ Crypto trading demand has dropped sharply. Fewer new projects launch, older projects can’t create momentum, and there isn’t enough compelling narrative to pull in capital.
+ Capital has flowed into traditional assets. US stocks, gold, and oil are swinging strongly, drawing all investor attention.
+ Almost no new inflow of funds. Retail has almost disappeared. Institutions are focusing on new product lines that haven’t been tokenized yet, or don’t need to issue a token.
Low volume isn’t always bad. History shows that these kinds of “hibernation” phases are often an opportunity to accumulate.
