Bitcoin [BTC] and the cryptocurrency market saw bullish sentiment take over after a series of downturns. The cumulative valuation now stands at $1.41 trillion. Due to the choppy price movement over the past couple of months, Bitcoin’s trading volume has dropped sharply. As a matter of fact, the figure is now hovering around levels that was last seen almost nine months ago.
This was revealed by the crypto-analytic platform, Santiment which tweeted that now the individual investors of Bitcoin will have a higher impact on markets. The tweet read,
“Bitcoin’s daily trading volume is hanging around low levels last seen in October 2020. These 9-month lows don’t necessarily mean $BTC is in for a price decline. If anything, this simply means individual trades will have a greater impact on markets.”
Summer doldrums may have contributed to the remarkably low volumes and poor performance in markets, money According to Luno’s UK country manager, Sam Kopelman, money managers de-risking their portfolios due to the turbulence in traditional markets, coupled with macroeconomic concerns about the effects of the pandemic is another driver for the ongoing trend.
Signs of an undecided Bitcoin market
Bitcoin’s dramatic revival over the last week is evident from the fact that the supply of BTC is being continuously moved off of crypto exchanges. Currently, the supply of BTC being held on exchanges is surging close to levels last seen in the first week of January.
While the market might have been in the process of recovery, the investors are still in hot water. All in all, the short-term outlook for the cryptocurrency can be said to be undecided with mixed signals emerging from every direction. For a strong bullish impulse, the crypto-asset requires the backing of an equally strong trading volume. The divergence formed could lead to correction in the coming days.
During the summer months, institutions typically ease up with their activity and hence, it can be said that the latest strength in the market comes from the retail club.
