The bitcoin daily trading volume of BitMEX, the world's leading cryptocurrency derivatives trading market, has reached its lowest level in 2019.
When the last time the BitMEX exchange recorded such a low position, the price of BTC soared by more than 20% in just two days, thus starting the bull market in 2019.
BitMex reduces activity to the level of November 2018
The current BTC trading volume is similar to the situation in November 2018, when the BTC stagnated and began to drop sharply to a new low. In general, BitMEX trading volume heralds interest in BTC, this time, social media commentary said the market is "lifeless":
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"Bitmex has just set a minimum daily trading volume in 2019. The market is not alive. Note: This transaction volume is expressed in BTC. Bitmex uses BTC as a margin collateral, and the realized profit and loss is in BTC, so the BTC transaction volume ratio IMO's dollar trading volume is better."
Analysis: trading volume plummets and volatility stable or creating conditions for bitcoin soaring
BitMEX is not alone. Coinbase has also recently reached the minimum volume in a few months. At the same time, the transaction volume of the peer-to-peer trading platform LocalBitcoins fell by only 30% this month, to the lowest level since September 2018.
As of November 17, 2019, the volume of major cryptocurrency exchanges fell to a three-month low and it appears to continue to fall. Trading volume began to decline on November 15 and quickly fell to current lows. Coinbase trading volume fell from $185 million to $65 million. The volume of currency security transactions fell from $1 billion to $517 million. Bitfinex's trading volume fell from $96 million to $39 million, while BitMEX's trading volume fell from $2.9 billion to $905 million. It is clear that the decline is the lowest level in the last three months. The biggest drop occurred at BitMEX, and the volume of transactions fell by more than 68%. This was followed by Coinbase, which fell more than 64%, and Bitfinex, which fell more than 59%, and the least affected was a drop of more than 48%.
In addition, the volatility of Bitcoin hit a low of 2.5% on October 25. Since then, the volatility has stabilized at around 4% in more than 20 days. The last volatility sideways was after the April rise, when Bitcoin rose from $4,100 to $5,600 in 30 days. Since then, the volatility has dropped, leading to more price increases. At present, this volatility seems to play a similar role, resulting in large price fluctuations. However, the direction of BTC is still unknown.
Regardless of the decline in trading volume, which indicates a market turnaround or a weakening interest in cryptocurrencies, the possibility of price turbulence is not unreasonable. The low volatility of Bitcoin usually means that another major price change is imminent. When prices become an independent trend, traders are always flocking to the exchange.
As U.Today reported, by the Christmas holiday, the cryptocurrency with a higher market capitalization tends to have greater volatility, and 2019 is no exception.
Chain activity and currency flow slowed down
BTC's spot trading volume also fell, falling to $17 billion in 24 hours. But the trading structure has changed dramatically. More than 85% of the volume is from Tether (USDT) transactions, compared to 75% in the past few weeks. The USDT deal is so popular that this situation is often observed during the sell-off.
Overall, BTC activity has slowed, including the flow of funds to and from the exchange. After a few months of rebound, BTC began to fall behind. Activity on the chain is slowing down, which is not uncommon on weekends, especially after the recent 1-Satoshi transaction backlog.
"24-hour bitcoin network data: price: $848.69 (-0.8%)
Volume on the chain: $3 billion (-45%);
Active sending transactions: 427,000 (-12.9%);
Active acceptance of transactions: 484,000 (15.9%)"