Bitcoin surged 9.3% this July, marking its first monthly gain since April. Yet, this rally unfolded alongside a sharp slump in market activity, raising questions about the strength of investor conviction behind the price boost.
Trading Volumes Sink as Institutional Interest Declines
At the beginning of July, Bitcoin hovered near $58,000. It steadily climbed to above $64,000 before a mild pullback, reflecting a positive price trajectory.
Despite the price jump, spot trading volumes tell a different story. K33 Research reported an average daily spot volume of about $2.2 billion this month, the lowest since late 2023. Open interest in derivatives like CME futures remains close to multi-year lows. Darkfrost, an on-chain analyst, highlighted stark volume drops on major exchanges: Binance’s trading dipped from $246 billion in November 2024 to just over $35 billion in July. Similarly, Bybit, OKX, and Coinbase witnessed declines of 85%, 67%, and 61% respectively during the same timeframe.
This dramatic drop in volume extends to the number of Bitcoin coins traded, with Glassnode noting rates not seen since 2019. The disconnect between rising prices and plunging activity suggests that solid demand and a shift in the broader macroeconomic environment are needed to sustain any bullish momentum.
This material is for informational purposes only and does not constitute financial advice.
