Bitcoin trading volumes have collapsed in the past few days. According to data sourced from CoinGecko, daily Bitcoin trading volumes across major exchanges fell to as low as $14.5 billion on Monday, its lowest level since the 5th of March.
That’s a huge drop after Bitcoin daily trading volumes surged as high as $70 billion earlier in the month, the highest level since the aftermath of the FTX collapse last November.
The drop in trading volumes is concerning.
It could suggest waning investor appetite for purchasing Bitcoin at current levels in the $27,000s, as US regulatory concerns mount, and as fears about a US bank crisis ebb.
It could be a result of reduced fiat-to-crypto on-ramps in wake of the collapse of crypto-friendly banks in the US earlier this month (most notably, the collapse of Silvergate).
Worryingly, the dip in Bitcoin volumes seen earlier this month proceeded a sharp though ultimately short-lived dip from the mid-$22,000s to sub-$20,000 levels.
Bitcoin bulls will be hoping that BTC doesn’t experience a similar drop from current levels to key support in the $25,000 area.
