Bitcoin Spot Volume Hits 7-Year Low Amid Leverage-Driven Price Moves
Bitcoin spot trading volume has dropped to its lowest level since 2019, sparking concerns about a potential late-stage bear market. According to recent data, Bitcoin's spot demand has dried up, with the number of investors actually buying and holding the cryptocurrency with real money at an all-time low.
This decline in spot volume is particularly concerning given that futures open interest continues to rise, suggesting that leverage, not genuine buying power, is driving price movements. The April episode showed that rallies like this rarely last, leaving many wondering if Bitcoin's current rally will follow suit.
The data also shows that short-term holders are shrinking, with coins held under six months now making up just 23.6% of the supply. This trend suggests that investors are increasingly holding onto their Bitcoin for longer periods, reducing selling pressure and potentially contributing to a prolonged bear market.