Bitcoin's 30-day cumulative moving average trading volume on major exchanges Coinbase, Bitfinex, Kraken and Bitstamp is at its lowest level since August 2021, according to the data.
Over the past month, average daily bitcoin trading volume on these exchanges has been just over $1 billion, down nearly 60% year-over-year from last May's average daily volume of $2.57 billion.
With the Federal Reserve and other central banks fighting inflation by raising interest rates, the rising cost of capital is prompting many investors to start rethinking their investment options.
Noelle Acheson, head of markets at Genesis Global Trading, has an explanation for why bitcoin trading volumes are down. She believes that, on one hand, the Fed's tightening monetary policy has led to less liquidity in the market, and on the other hand, higher interest rates have increased the opportunity cost of investing in non-equity assets such as bitcoin, meaning that the cost of investment is rising but potential returns are declining.
Noelle Acheson also noted that about 76% of bitcoins have not moved in the past year.
Glassnode's data also shows that interest in bitcoin is light. The data on the chain shows that the number of users holding bitcoin has not grown much.
Meanwhile, a report from Bank of America on April 12 showed that bitcoin outflows totaled $1.2 billion in the previous week, the most so far this year
Over the past month, average daily bitcoin trading volume on these exchanges has been just over $1 billion, down nearly 60% year-over-year from last May's average daily volume of $2.57 billion.
With the Federal Reserve and other central banks fighting inflation by raising interest rates, the rising cost of capital is prompting many investors to start rethinking their investment options.
Noelle Acheson, head of markets at Genesis Global Trading, has an explanation for why bitcoin trading volumes are down. She believes that, on one hand, the Fed's tightening monetary policy has led to less liquidity in the market, and on the other hand, higher interest rates have increased the opportunity cost of investing in non-equity assets such as bitcoin, meaning that the cost of investment is rising but potential returns are declining.
Noelle Acheson also noted that about 76% of bitcoins have not moved in the past year.
Glassnode's data also shows that interest in bitcoin is light. The data on the chain shows that the number of users holding bitcoin has not grown much.
Meanwhile, a report from Bank of America on April 12 showed that bitcoin outflows totaled $1.2 billion in the previous week, the most so far this year