Bitcoin’s Trading Volume Sees Consistent Radical Change — Here’s What to Expect

Bitcoin Exchange Outflow Volume Nears 100,000 BTC Per Month — The Ultimate Bullish Signal?

According to the Bitcoin technical charts, a notable change has been spotted in the market. Since the start of the year, there has been a significant change in the structure of Bitcoin’s trading volume.

CryptoQuant, a leading on-chain data platform, took to Twitter to update the market on the new development and highlighted the potential changes that could be recorded in the long term.

The report revealed that the changes spotted might pioneer a new era of low volatility in the cryptocurrency market. This could further result in a turning point for cryptocurrency investors and traders.

The data from CryptoQuant reveals that there has been a sharp drop in the Spot vs Derivatives volume ratio. From January 11th till the present, the Spot vs Derivatives volume ratio has moved from 35% to 6%.

This marks a 29% drop within a 7 months time frame. Only 6% of the total Bitcoin trading volume is on the spot market. According to the report, the pattern suggests that investors are unwilling to sell their Bitcoins.


Despite the constant fluctuation in Bitcoin’s price, long-term holders seem committed to playing the long game, as they have collectively held back from partaking in active BTC sales since the year began.

As CryptoQuant explained; 

Bitcoin, like digital gold, is considered a valuable asset, and investors prefer to hold onto it for an extended period rather than sell it. This is seen in the BTC: Binary CDD chart. Since the start of the year, there have been no active sales among the cohort of LTHs.” 

Meanwhile, the total Simple Moving Average (SMA-7d) trading volume of Bitcoin across all cryptocurrency exchanges has dropped from 2.5 million BTC in March to less than 600 thousand BTC in July. This marks a decline of more than 75% over five months.

This could also be a sole reflection of the maturation process of the cryptocurrency market. This could mean the market is becoming more stable and predictable and moving away from its previous volatile state. However, if the trend continues long-term, it could lead to significant changes in the Bitcoin market.

A decrease in spot volume may lead to a reduction in liquidity, which, in turn, could increase demand and the price of Bitcoin. The market currently lacks a new wave of optimism. The question is, where will it come from?” Cryptoquant stated.

BTCUSD Chart by TradingView

At press time, Bitcoin trades for $29,218 while it struggles to shake off hourly losses.