The post Bitcoin Transaction Volume Hits All-Time Low, BTC Price Drop Likely? appeared on BitcoinEthereumNews.com.

Despite the Bitcoin (BTC) price facing challenges in breaching the $70,000 mark decisively, other cryptocurrencies, known as altcoins, are exhibiting significant momentum in the current market. On-chain metrics indicate a notable decline in trading activity for Bitcoin, signaling a possible impending price correction. Bitcoin (BTC) Transactions Volumes See Major Drop Bitcoin has hit an all-time low in transaction volume, signaling a significant shift in market dynamics. Both Bitcoin spot trading and on-chain transaction volume have plummeted, with interest now primarily focused on ETFs and derivatives. The BTC market is increasingly dominated by speculative demand through these financial instruments. Courtesy: Santiment Interestingly, the seven-day trading volume for Bitcoin has dropped to under $14 billion, the levels last seen in 2023 when the BTC price was trading under $30,000. Additionally, the chart highlights a significant decline in interest in Bitcoin trading and on-chain transaction volumes, with the latter being notably low. The network recorded only 722,000 BTC moved in seven days, a stark contrast to the 1.79 million BTC moved in October 2023, despite similar trading volumes and half the price. Along with Bitcoin, the crypto market volumes have dropped to $50 billion, with funding rates only marginally positive, indicating low interest, reported 10x Research. Federal Reserve policy and inflation data are viewed as the critical factors that could propel Bitcoin to new all-time highs. On June 5, the Bank of Canada might initiate a global rate-cutting cycle, potentially setting a precedent for the Fed. Additionally, for Bitcoin to rally, the US inflation report on June 12 would need to show a lower figure, around 3.3%. Positive Indicators To Watch While the spot trading activity remains lull, the Bitcoin derivatives market shows strength along with a strong interest in Bitcoin ETF. Meanwhile, the approved Bitcoin spot ETFs have seen strong demand since…

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Filed under: News - @ June 3, 2024 11:16 am