Bitcoin Spot Volume Hits 7-Year Low as Leverage Takes Over

Bitcoin's spot volume has hit its lowest level since 2019, raising concerns that it may be in a late-stage bear market. The data shows that leverage is driving price movements, rather than genuine spot buying.

The share of coins held by short-term holders (STH) has shrunk to just 23.6% of the total supply, which is a pattern seen near the end of every past bear market.

This could be a negative extreme for the market, where attention and buying interest are depressed while STH shares continue to fall.

In other economic news, jobs and inflation have cooled together, with the probability of the Fed holding rates in September climbing to 67.6%.