Bitcoin Spot Volume Plummets to 7-Year Low as Leverage Takes Over

Bitcoin's spot volume has hit its lowest level since 2019, while futures open interest continues to rise. This means leverage, rather than real buying, is driving prices.

The number of investors actually purchasing and holding Bitcoin with cash is unusually low, which could indicate a late-stage bear market.

Short-term holders are shrinking, with coins held for under six months making up just 23.6% of the supply. This pattern has appeared near the end of every past bear market, suggesting that long-term holders are taking control and reducing selling pressure.

The combination of weak jobs and cooling inflation has led to a higher probability of the Fed holding rates steady in September, but heavy Treasury issuance keeps long-end yields elevated.