Low Volumes Across Crypto Spot Markets and Derivatives Indicate Bearish Conditions
When crypto markets shed significant value, traders typically look to see if trade volume increases in order to support the current prices.
Crypto Volumes Slide Month-Over-Month Since November
Data from theblockcrypto.com’s exchange volume dashboard, which sources data from cryptocompare.com metrics, indicates spot market volume has fallen month-over-month since November.
While November saw $1.4 trillion, December saw a recorded $1.04 trillion.
Even though November’s spot market volume was larger than December’s and the three weeks of January, the $2.23 trillion in volume recorded in May 2021 was double the size.
Daily exchange volume has followed the same pattern as daily crypto trade volumes are lower than they were two months ago.
On November 2, 2021, $53.27 billion was settled that day, while data from January 22, 2022, shows $24.65 billion.
When BTC tapped an all-time price high on November 10, 2021, the following day $28 billion in bitcoin futures open interest was recorded.
Regarding bitcoin futures volumes, they were higher in October than they were in November.
Aggregated open interest and volumes tied to bitcoin options have also dropped month-over-month for the last two months.
For the most part, the low volumes across crypto spot markets and derivatives have affected the crypto economy negatively.