Bitcoin Trading Volume Declines, Rally Losing Steam Already?

Data shows the Bitcoin trading volume has further declined recently, suggesting that the latest rally may be losing steam. Bitcoin Spot Trading Volume Continues To Decline This Week According to the latest weekly report from Arcane Research, the BTC spot volume has observed further decline in the past week. The “trading volume” is an indicator that measures the total amount of Bitcoin being involved in spot trades on any given day. When the value of this indicator goes up, it means more coins are now changing hands. This trend shows that the network is becoming more active. Usually, high volumes make up for an ideal environment for pushing any big price moves. This is because for sustaining such movements, you require a large amount of traders involved in the market. Which is precisely what high values of the metric represent. Related Reading | Data: Bitcoin Long-Term Holder Supply Has Stagnated Since October High On the other hand, declining volumes imply that the Bitcoin network is turning inactive. Such a trend may be a sign of general disinterest in the crypto among investors at the moment. Now, here is a chart that shows the trend in the BTC Trading Volume over the past year: The indicator's value seems to have been declining recently | Source: Arcane Research's The Weekly Update - Week 11, 2022 As you can see in the above graph, the Bitcoin daily volume has been on the decline for a while now. Over ...