The combined trading volume of Bitcoin and other altcoins has hit its lowest value in over a year, indicating a lack of interest among investors. On-chain analytics firm Santiment reported that the volumes were last at significant levels in March of this year. The trading volume measures the total daily amount of a given asset being moved around on the blockchain. High values for this metric usually suggest active trading in the market, while low values can signify a lack of interest among investors. The combined seven-day trading volume for large cap assets is the lowest it has been for over a year. Only Bitcoin and Ethereum have any appreciable volumes remaining. The decline of the indicator can be a worrying sign for the sustainability of the rally in prices for Bitcoin and other assets. At the time of writing, Bitcoin is trading at around $27,300, up 1% in the last week.
As sharp price action, such as a rally or a crash, usually attracts high numbers of users to the market, low volumes can be a worrying sign for the longevity of a rally. The latest low volumes suggest that general interest in trading cryptocurrencies has decreased among investors. The sustainability of rallies in Bitcoin and other assets may be threatened if such trends continue. The value of the indicator for the altcoin market has always been lower than that of Bitcoin and Ethereum, but it has dried up in recent times. The latest trend may suggest a loss of investor interest.
Featured image by Kanchanara on Unsplash.com. Charts from TradingView.com and Santiment.net.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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