As Bitcoin (BTC) reaches a new all-time high above $110,000 in May 2025, some may question why analysts are referencing data from 2022. But according to CryptoQuant analyst Axel, a long-term decline in BTC/USD trading volume since the LUNA collapse in July 2022 may actually help explain the current bullish momentum.
What Happened to Bitcoin Trading Volume?
Data shows that weekly BTC/USD trading volume on centralized exchanges has dropped from 2.9 million BTC in July 2022 to just 426,000 BTC in recent weeks — a decline of over 85%.
Rather than being a sign of weakness, this sustained drop in trading activity reflects a structural shift in the market:
More BTC is being held in cold storage or long-term wallets, reducing liquid supply.
Institutional players are accumulating off-exchange, increasing price pressure without inflating visible volume metrics.
Reduced sell-side liquidity makes every buy-side push more impactful — contributing to steep price surges, like the one seen this week.
Why This Matters Now
The low trading volume isn't a current stat — it’s a trend that began in 2022 and continues through 2025. It’s being cited now because this supply shrinkage may be one of the key underlying reasons Bitcoin was able to break its previous ATH and maintain such sharp upside momentum.
In other words, less Bitcoin available to trade = more pressure on price when demand rises. That’s exactly what we’re seeing now as new money enters the market while long-term holders stay inactive.
Bottom Line
This isn’t about 2022 nostalgia — it’s about how multi-year market structure shifts are aligning with macro demand catalysts in 2025, helping fuel Bitcoin's breakout beyond $110K.
