Recent data from CryptoQuant suggests that Bitcoin’s trading activity has dropped to levels not seen since late 2020. This decline, with average daily volume on centralized exchanges hovering around $965 million, is attributed to several factors including a decrease in global inflation rates, institutional interest shifting towards derivatives and ETFs, and regulatory uncertainty surrounding stablecoins. 820,000 BTC were withdrawn from exchanges in the last six months, highlighting a shift toward long-term holding strategies. This trend suggests that investors are prioritizing securing their assets rather than trading them frequently. While Bitcoin’s price remains stable, further market activity is needed for a potential price rally, particularly on centralized exchanges. The impact of this change will depend on whether or not long-term holders continue to hold their Bitcoin and if this will lead to greater volatility in the future.