Bitcoin traders have been proceeding with caution this week, leading to a lack of significant price movements. This has also resulted in decreased trading volumes on major crypto exchanges for both spot trading and derivatives, which have fallen below the levels seen earlier this year.
On-chain data from CryptoQuant reveals a steady decline in daily trading volumes since Q1. The question remains: what implications will this have on Bitcoin’s future price?
The months that have been far more profitable for bitcoin traders have been April, May, October and November, with higher median returns and greater volatility.
Returns in September have usually been negative. pic.twitter.com/ulyuIYE32R
— Smol Bull (@SmolBullXBT) September 24, 2023
Trading Volumes Continue to Decline Amidst Uncertain Market Conditions
There has been a significant decrease in trading volumes this year compared to the high levels seen during the Silicon Valley Bank controversy in March. The futures market has fallen by 96% and the spot market has fallen by 98% since that time. In the past week,
💥📊Crypto Stats in 2022-2023
🔸As of Sep 25, 2023, the global #crypto market cap is $1.04T trillion
🔸Trading volumes of crypto investment products surged 127%
🔸67% of Millennials see Bitcoin as a safe haven asset
— Bitinning (@bitinning) September 25, 2023
Bitcoin trading has also experienced a significant decline with spot trading volume dropping by 33.67% in a 24-hour timeframe and the spot exchange trade volume decreasing by 81% from the beginning of the week.
The situation is even more concerning when you factor in the falling derivatives volumes, which have decreased by 88% since the beginning of the week according to on-chain data collected by CryptoQuant.
Bitcoin’s Future Price: What Factors Could Affect It?
The lack of interest from institutional traders and retail investors is reflected in the dwindling activity in the markets. This could determine Bitcoin’s short-term direction and, in turn, the direction of the majority of the crypto market.
Bitcoin’s current trading price is $26,556, but the absence of significant trading activity could result in the cryptocurrency trading sideways or even facing downward pressure. If Bitcoin falls below $25,000, it could suggest a prolonged bearish trend with increased selling pressure.
let’s predict BTC's Future Price.
This is a speculative game! You can share some factors influencing Bitcoin's price, like market sentiment, adoption, regulatory changes, and macroeconomic events.
— VOREM (@vorem_co) September 14, 2023
Alternatively, the lower price could entice investors to buy, leading to higher volumes. According to a social media post by crypto analyst Captain Faibik, Bitcoin may reach as low as $23,000 in October before breaking out to reach $34,500 by early next year.
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