As the price of Bitcoin approaches record levels, trading volumes on cryptocurrency exchanges are seeing the lowest levels in recent years.
In cryptocurrency markets, the price of Bitcoin (BTC) being near peak levels is generally associated with high investor interest and increasing trading volumes. However, a new report prepared by CryptoQuant reveals that this time the situation is different. While Bitcoin is trading near record levels, trading volumes on exchanges are showing a worrying decline.
According to analysts, one of the main reasons for this situation is the recently increased popularity of spot Bitcoin ETFs. These ETFs have diverted a portion of Bitcoin trading volumes away from exchanges. Additionally, another important point highlighted in the report is the decreasing interest in altcoins. The low demand for altcoins is causing overall trading volumes in the market to be suppressed.
In periods dominated by low trading volumes, there is usually a lack of investor enthusiasm in the market, and investors tend to act more cautiously. As stated in the report, those who are currently influencing the market are mostly conscious and long-term investors. This situation indicates that price movements are occurring more calmly and in a controlled manner.
However, experts caution that sudden increases in trading volume should be approached with caution. Because a potential increase in trading activity could often signal a new local peak. Investors are advised to closely monitor trading volume indicators during this period.