Bitcoin Trading Volume Plummets Back to 2020 Levels, What’s Driving the Decline?

Bitcoin trading volumes on centralized exchanges (CEX) have dropped to levels last seen in early 2020. According to Senior analyst at CryptoQuant, Axel Adler Jr., the average daily spot trading volume currently hovers around $965 million – a significant drop from pre-inflationary peaks. Adler suggests that this decline indicates a shift towards accumulation, with traders holding onto their assets rather than engaging in active trading. This trend raises concerns among experts as declining volumes may exacerbate price volatility and restrict market liquidity.