Bitcoin trading volume sinks to 14-month low

cnbctv18.com:

The crypto rout that started in November 2021 after Bitcoin briefly touched a fresh all-time high of $69,000, has continued well into 2022 now. The daily volume across cryptocurrency exchanges has been shrinking.

A bitcoinist report pointed out that Bitcoin trading volume has sunk to a 14-month low and is now at around the levels seen in December 2020. The legacy coin nosedived 9 percent to under $35,000 after Russian President Vladimir Putin announced a military operation in Ukraine on February 23.Daily trading volume is an on-chain metric.

On-chain metrics are indicators of all the transactions that have happened on a particular blockchain. In this case, the daily volume is a measure of the total amount of coins transacted on the Bitcoin blockchain on that day.

A rise in the daily volume simply means the network is active and a higher amount of BTC is being transacted.Also read: Will Bitcoin go below $30,000? Some analysts believe soAs per the bitcoinist report, the daily volume hit $1.7 billion on February 19, its lowest since December 7 or in nearly fourteen months ago.The current low trading volumes suggest traders and investors are losing interest or are waiting for the prices to reach a particular level. This may also mean that it may take a while for the prices to bounce back.Recent Glassnode data also pointed out that nearly 4.7 million bitcoins are being held in crypto wallets at unrealized losses.

On-chain analysts believe this could be because short-term traders might have been unable to offload due to the ongoing price decline.The Glassnode weekly report suggests that such user behavior may be attributed to investor psychology. The pain caused by the financial cost of holding on to crypto-assets at huge