Bitcoin Trading Activity Sinks to Multi-Year Lows Ahead of Inflation Data

The Bitcoin market has entered a period of unusual calm as perpetual trading activity reaches multi-year lows. This decrease in momentum is evident across major venues, with traders growing cautious ahead of Wednesday's U.S. inflation release.

K33 Research reports that the 30-day average combined volume for BTC/USDT perpetuals on Binance and Bybit has fallen to $10.8 billion as of August 10, a level not seen since early 2021. Spot participation has also weakened, with average daily Bitcoin spot volume dropping 18% over the past week to $1.8 billion, its lowest one-week level since February 2024.

Vetle Lunde from K33 describes the current environment as a self-reinforcing cycle where muted activity discourages traders, further slowing the market. Despite this slowdown, open interest in Bitcoin perpetuals has remained relatively high throughout the summer, averaging around 300,000 BTC between June 1 and August 11.