BTC Trading Volume Crashing Suggests Sellers Are Giving Up

The BTC trading volume crashing suggests that sellers are giving up and the price is down by 50% from its all-time high recorded in November 2021 so let’s read further in our latest Bitcoin news.

The latest market crash has been felt by the BTC holders according to the analysis of the BTC trading volumes crashing which suggests that only a few coins are being sold this time around during the strong selloff in November and May of 2021. Judging from the TradingView indicators known as “bitcoin Real Volume” about a half of the USD volume was seen during the week with the biggest selling pressure being in November 2021 compared to May the same year. In the meantime, the selling happening during the worst week for BTC in January this year saw even lower volumes.

The indicator includes BTC trading volume against both the US dollar and a number of USD-pegged stablecoins across the handful of bigger crypto exchanges. As per the indicator, BTC trading volumes in March 2020 were set at $63 billion, In May 2021 they were set at $200 billion, in November 2021 were set at $103 billion and most recently in January 2022 were set at $78 billion.

The same general trend was reflected in the Blockchain.com volume indicator which tracks BTC trading volumes from selected exchanges. Looking at the indicator there are volume spikes in March 2020, 2021, and January 2022 which correspond to the market selloffs in the months. As with previous indicators, Blockchain.com’s data shows that the May 2021 charts show the most intense selling in terms of exchange tradign volumes with the selloffs in November 2021 and January 2022 becoming smaller. The volume data from BTC/USDT trading on Binance which is the largest crypto exchange by volume showed that the May 2021 selloff was the most intense.

A notable difference with the Binance Data was that the March 2020 crash came in with the second-biggest volume followed by November 2021 and January 2022. with the numbers showing that May 2021 holds the record on all data sources checked, it seems that less fiat currency was cashed out which indicates that the weaker holders of BTC already sold. The theory that weaker holders are leaving BTC and getting replaced by stronger holders was suggested in a report from research company Delphi Digital. While Bitcoin’s volatile nature is persistent, it is anyone’s guess when the tides will turn in favor of the bulls but with less selling taking place for the mini-crashes of the coin, the time for a bottom forming on the market could be getting closer.