Research Company Evaluates Interest In Bitcoin Recently

According to the weekly report of Arcane Research, which studies the crypto market, the trading volume of Bitcoin on exchanges continues to decline.

Arcane researchers only took a look at the largest cryptocurrency exchanges to get more robust data, although not all trades.

According to the research report Binance spot made on 10 selected external crypto currency exchanges bitcoin Its trade fell to the lowest level recorded since February 2021.

7-day average on 10 cryptocurrency exchanges BTC While its trade is around 1 billion dollars, this figure is around 6 billion dollars in the industry giant Binance. Although the volumes increased during the turbulent period with the bankruptcy of the FTX exchange, it could not be permanent.

Arcane Research experts believe that Bitcoin volume continues to decline. “The interest in the sector has decreased” commented on. According to experts, the decline in volume indicates that the number of investors actively trading Bitcoin is decreasing.

How is the Volume Interpreted in the Markets?

Transaction volume is of great importance in all speculative investment products, regardless of crypto, gold, stocks.

It is of great importance to support the sudden rise and fall movements in the market with high volume. If the price of a financial instrument rises rapidly but a similar increase in volume does not occur, it can be thought that the rise will not be permanent. The same rule applies to a price drop.

For example, if you see Bitcoin losing 30% in one day, but there is no increase in trading volume, you can hope that the decrease is not due to a huge selling pressure.