Bitcoin Trading Volume Hits Multi-Year Low Amid Exchange Shutdowns

Bitcoin's trading activity has been unusually quiet in July, according to K33 Research, which notes that this is on track to be its slowest month since November 2023.

The average daily Bitcoin spot trading volume has fallen to about $2.2 billion, and the price remains stuck in a narrow range of $60,000-$66,000, dropping around 3% over the past week to $63,300.

This subdued activity is particularly challenging for crypto exchanges, which rely heavily on trading fee revenues to generate income. With fewer transactions, their revenue reduces further, adding strain to an already struggling industry that's facing a decline in users and increased competition from bigger players and on-chain markets.

The period of low trading volume has led to several exchange shutdowns, including BitMEX, which will close on September 23rd after reviewing its business and the wider industry. BitMart also announced an orderly wind-down, while AscendEX stopped operating on July 1st due to regulatory, financial, and operational pressures.

Vetle Lunde, head of research at K33 Research, suggests that uncertainty ahead of the Federal Reserve's decision may be keeping traders cautious, with markets split between no change and a 0.25-percentage-point rate hike.