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The value of the digital currency market has fallen sharply over the past two weeks, and the price drop has not sparked an increase in trading volume. Data shows that cryptocurrency spot market trading volume has slipped from $1.4 trillion in November 2021 to $593 billion this month. Bitcoin futures open interest and trading volume have also dropped significantly over the past two months.
Crypto trading volumes have fallen month-on-month since November
When cryptocurrency markets depreciate significantly, traders typically look to see if trading volume increases to support current prices. Cryptocurrency spot market volumes continued to decline as many coins hit record highs in the second week of November.
Data from theblockcrypto.com Trading Volume DashboardData from the cryptocompare.com indicator shows that spot market volumes have declined month-on-month since November.
It reached $1.4 trillion in November, while December hit a record $1.04 trillion. While data for January 2022 is incomplete, $593 billion has been settled to date.
While November’s spot market volume was larger than the three-week period in December and January, the $2.23 trillion recorded in May 2021 was double that. daily trading volume Following the same pattern, as the daily crypto trading volume was lower than two months ago.
$53.27 billion was settled on November 2, 2021, while January 22, 2022 showed $24.65 billion. While monthly and daily trading volumes in the spot market for crypto assets have declined, so have derivatives markets such as futures and options.
When bitcoin An all-time high was reached on November 10, 2021, with $28 billion in open interest in Bitcoin futures recorded the next day. Indicators for January 22 indicate that $14.64 billion A large number of Bitcoin futures exchanges recorded open interest.
about Bitcoin future transaction volume, they are higher in October than in November. While $1.94 trillion was recorded in October last year, only $1.08 trillion has been recorded so far this month.Total open interest and trading volume vs. Bitcoin Options The past two months have also declined month-on-month.
For the most part, low trading volumes in the crypto spot market and derivatives have had a negative impact on the crypto economy. Rising volume usually indicates a bullish trade, but this has not been the case recently.
What do you think of the recent decline in trading volume in the crypto market? Let us know what you think about this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons, theblockcrypto.com Dashboard,
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