CryptoQuant: BTC Spot Trading is Declining and Traders Are Liquidating Long Positions
As the value of BTC hovers around $25,000-27,000, analysts have noted a decline in spot trading volumes and the potential for significant liquidations in the derivatives market.
According to data from CryptoQuant, last week saw spot trading volume for the first cryptocurrency reach levels not seen since 2018, with only 8,000 to 15,000 transactions occurring per day.
This stark contrast to March of this year, when the daily average was 600,000 transactions, points to a trend that may be influenced by the economic situation in the United States.
Analyst Cauê Oliveira explains that one of the main reasons for this decrease in trading activity is due to rising fears concerning the overall macroeconomic environment.
The actions of the US Federal Reserve have created a sense of uncertainty, causing investors to anticipate a potential recession.
Further evidence of this trend can be seen in the Fed’s policy of raising the key interest rate, to which the Bitcoin rate did not respond.
This has resulted in a surge of interest in hodling, with more and more people viewing cryptocurrencies as a long-term investment rather than a means for short-term profits.
