With its price continuing to slump, trading volume in %Bitcoin ($BTC) has fallen to its lowest level in nearly five years as crypto investors pullback and wait on the sidelines.
An analysis by %CryptoQuant of both spot and derivatives exchanges shows that the total volume of Bitcoin held on all exchanges has fallen in August to its lowest level since November 2018.
As of August 26, Bitcoin’s trading volume on all exchanges sat at 129,307 digital tokens, down from a peak of 3.5 million reached in March of this year when the price of Bitcoin was rising.
The price of Bitcoin recently fell below $26,000 U.S., though the largest cryptocurrency has still gained more than 55% this year, outpacing gains seen in stocks and other investment vehicles.
Bitcoin is currently trading at $25,950 U.S., down from more than $30,000 U.S. at the start of the summer.
A U.S. regulatory crackdown on cryptocurrencies in conjunction with this year’s banking crisis among regional lenders in America has driven crypto traders and investors to the sidelines and they continue to wait for an opportunity to jump back into the market.
On August 17, Bitcoin experienced a big one-day selloff as equity markets plunged on worsening economic data and declining investor sentiment.
Cryptocurrencies remain volatile and prices are prone to big and sudden movements.
Bitcoin’s price fell as low as $16,000 U.S. last autumn following the collapse of the FTX crypto exchange before nearly doubling earlier this year and now retreating once again.