Bitcoin Volumes Plunge to 2023 Lows Amid Geopolitical Tensions and High Interest Rates
Bitcoin trading volumes have plummeted to their lowest level since the 2023 bear market. Spot volumes on leading exchanges have dropped by more than 75% from their late-2024 peak, according to CryptoQuant.
On Binance, July's trading volume fell from $246 billion to just over $35 billion, while Bybit saw a decline of 85%, Coinbase 61%, and OKX 67%. The analyst at CryptoQuant who goes by the pseudonym Darkfost notes that these low readings are reminiscent of the final phase of the 2023 bear market.
Darkfost cites several factors contributing to the weaker activity, including geopolitical tensions between the US and Iran, high interest rates due to inflation risks, and liquidity rotating into the stock market, particularly the tech sector. A return to a sustained uptrend for Bitcoin will depend on a recovery in demand, which could lift trading volumes again.
CryptoQuant points out that despite the price drop, investors are not rushing to move coins to exchanges to sell. Over the past six months, bitcoin reserves on centralized exchanges have fallen from 2.783 million BTC to 2.705 million BTC, a drop of about 78,000 BTC.