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Bitcoin spot exchange trading volumes hit its lowest level in almost five years last week as macroeconomic uncertainty kept investors on the edge. According to a new report by on-chain analytics platform CryptoQuant, this past week, daily BTC volumes on spot exchanges plummeted to its lowest level since 2018 and are yet to rebound. 
An analysis of CryptoQuant data from spot Bitcoin exchanges shows the transaction volume fluctuated between 8,000-15,000 daily transactions last week. The numbers are significantly lower than the 600,000 daily transactions recorded in March this year. Source: CryptoQuant 
The US government’s crackdown on the crypto industry and fears of recession is driving investors away, the report by CryptoQuant shows. Furthermore, the decline in daily Bitcoin transactions signal the investors don’t have a reason to return. 
“One of the main reasons cited is the growing fear regarding the macroeconomic scenario. The actions of the United States Central Bank perpetuate a constant feeling of uncertainty, leaving investors waiting for a possible recession,” the report said. 
Even as the US Federal Reserve has moved back and forth between interest rate hikes and pauses in 2023, adding to the general uneasiness and keeping traders nervous, CryptoQuant data shows long-term Bitcoin holders haven’t been shaken by the recent weakness. In response to the current economic policy in the US, they have held on to their BTC savings. 
“Instead of seeking quick profits through short-term trading, more and more people are viewing bitcoin and other cryptocurrencies as a long-term investment. They are more interested in holding their coins, believing in their future value, than selling at the first sign of profit,” the report concluded. 
However, the past few months have been excruciatingly<a href="https://news.todayq.com/while-btc-long-term-holders-reach-ath-short-term-holders-have-touched-multi-year-lows/"> difficult</a> for BTC short-term holders (STHs). In an August report titled “Exhaustion and Apathy”, on-chain analytics firm Glassnode revealed that STHs were largely sitting on unrealized losses. Furthermore, while long-term holders have been gobbling up Bitcoin – they<a href="https://news.todayq.com/data-long-term-bitcoin-holders-increased-their-holding-by-1-10-million/"> own</a> nearly 75% of the entire Bitcoin supply – short-term holder supply hit a multi-year low of 2.56 million BTC last month. 
Despite weak market conditions, Bitcoin’s market fundamentals are stronger than ever, with the hash rate having<a href="https://news.todayq.com/bitcoin-is-all-set-for-halving-as-hashrate-increases-661-in-two-years/"> risen</a> by a whopping 661% in the last two years. With the next Bitcoin<a href="https://news.todayq.com/bitcoin-is-all-set-for-halving-as-hashrate-increases-661-in-two-years/"> halving</a> on the horizon, data analysis has revealed some interesting<a href="https://news.todayq.com/bitcoins-halving-and-long-term-holder-trends-signal-a-patient-market/"> trends</a> that suggest investors may need to exercise patience for the next bullish phase. 
© Todayq News

Bitcoin spot trading volume plunges to five-year low as investors wary of “possible recession”

Todayq News

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