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  Bitcoin spot exchange trading volumes have disintegrated since March, while BTC price action has gone barely anywhere, research shows. 
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<div class="cointelegraph">
 <p>Bitcoin (BTC) <a rel="dofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s have seen trading <a rel="dofollow" title="volume" href="https://thebittimes.com/tag/volume.html">volume</a> collapse as traders deal with constant macroeconomic uncertainty.</p>
 <p>According to new research from on-chain analytics platform CryptoQuant published on Sept. 25, daily BTC volumes are at lows rarely seen since 2018.</p>
 <h2 id="fed-keeps-bitcoin-investors-wary-of-possible-recession">Fed keeps Bitcoin investors wary of “possible recession”</h2>
 <p>Bitcoin price action has stayed in a familiar range for several months, and as time goes by, interest in transacting appears to be fading.</p>
 <p>CryptoQuant data, which <a rel="dofollow" title="tracks" href="https://thebittimes.com/tag/tracks.html">tracks</a> activity on both spot and derivatives <a rel="dofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a>s, highlights the extent to which <a rel="dofollow" title="volume" href="https://thebittimes.com/tag/volume.html">volume</a>s have decreased since BTC/USD entered its current range in March.</p>
 <p>The past week saw between 8,000 and 15,000 daily spot <a rel="dofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a> transactions — a fraction of the standard March daily tally, which exceeded 600,000.</p>
 <p>For contributing analyst Caue Oliveira, a principal force behind the phenomenon is the macroeconomic climate.</p>
 <p>“One of the main reasons cited is the growing fear regarding the macroeconomic scenario,” he wrote in part of the commentary accompanying the data. </p>
 <blockquote>
  “The actions of the United States Central Bank perpetuate a constant feeling of uncertainty, leaving investors waiting for a possible recession.”
 </blockquote>
 <p>Oliveira referenced current economic policy in the U.S., where the Federal Reserve has flitted between interest rate hikes and pauses in 2023 while keeping overall conditions tight.</p>
 <p>Continuing, he noted that Bitcoin hodlers have chosen to keep hold of BTC capital as a result.</p>
 <p>“Instead of seeking quick profits through short-term trading, more and more people are viewing bitcoin and other cryptocurrencies as a long-term investment,” he concluded. </p>
 <blockquote>
  “They are more interested in holding their coins, believing in their future value, than selling at the first sign of profit.”
 </blockquote>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/26/26c538a24b7208f094f678250c762509.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin: Trading Volume (Spot vs. Derivative) chart. Source: CryptoQuant</em>
  </figcaption>
 </figure>
 <h2 id="little-food-for-btc-price-bulls">Little food for BTC price bulls</h2>
 <p>As Cointelegraph reported, times have become tough for Bitcoin speculators in recent weeks.</p>
 <p><strong><em>Related:&nbsp;Bitcoin price fights for $26K as US dollar strength hits 10-month high</em></strong></p>
 <p>Short-term holders — entities holding BTC for 155 days at most — now hold almost their funds at an unrealized loss, with their cost basis higher than the current spot price.</p>
 <p>In further research this week, fellow CryptoQuant contributor Yonsei_dent concluded that the cost basis of various Bitcoin newcomers would act as “strong resistance.”</p>
 <p>“Excluding investors who have been holding for the long term since 1.5 years (12m) + HODLers, investors who entered the market over the past year are believed to have a stronger tendency to buy and sell in the short term,” he warned.</p>
 <p>An accompanying chart showed unspent translation output (UTXO) numbers split by age band, forming resistance and support levels.</p>
 <figure>
  <img src="https://cdn.thebittimes.com/images/2023/09/26/f29b51ecca993aeb4f54cc1d67fe0f22.webp">
  <figcaption style="text-align: center;">
   <em>Bitcoin UTXO age bands annotated chart (screenshot). Source: CryptoQuant</em>
  </figcaption>
 </figure>
 <p>External interest in BTC exposure, meanwhile, also remains distinctly absent. Google Trends data shows the lowest interest in “Bitcoin” as a search term since October 2020.</p>
 <p class="post-content__disclaimer">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. </p>
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<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/bitcoin-exchange-volume-tracks-5-year-lows-as-fed-inspires-btc-hodling-tbt64039.html">https://thebittimes.com/bitcoin-exchange-volume-tracks-5-year-lows-as-fed-inspires-btc-hodling-tbt64039.html</a></p>

Bitcoin exchange volume tracks 5-year lows as Fed inspires BTC hodling

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