Bitcoin Trading Volume Hits 2023 Lows Amid Fed Rate Decision Uncertainty

Bitcoin's spot trading volume is on track to hit its lowest level since November 2023, with an average daily spot volume of $2.2 billion in July and a seven-day average of $2.1 billion, down 4% from the prior week.

The derivatives market was equally quiet, with CME bitcoin open interest staying near 2023 lows and funding rates between 5% and 7% all week, indicating no conviction in either direction.

Analyst Alex Krüger said a rate hike would have 'serious legs' given how little of it is priced in. A quarter-point hike has roughly a one-in-three chance, according to Reuters.

The Federal Reserve's decision on Wednesday will be closely watched, with some economists expecting at least one dissent either way.