Bitcoin exchanges trading volumes down 40% since early December

Over the past few weeks, the turnover of crypto exchanges has dropped by 40%, analysts at Arcane Research have shared their observations.

The chart below shows the rapid rise in trading Crypto Bank volume on exchanges in BTC/USD pairs during October-November and the subsequent sharp drop in the index.
The dynamics of trading volume on exchanges with more or less real trading volume. Data: Arcane Research, Messari, Skew.

„Are retail traders on spot exchanges depleted, or have they simply taken a break before the upward movement of bitcoin?“ the analysts wondered.

The seven-day volatility of the bitcoin price has also fallen significantly in a few weeks, from 5% to the „usual“ values in the 2-3% range.
Bitcoin’s correlation with gold and other traditional market assets declined significantly in early December.

„For 2020, there was a high correlation between bitcoin, the stock market and other asset classes. However, over the past few months, the correlation between digital gold and the S&P 500 and gold has declined significantly,“ stressed the experts.

Bitcoin’s statistical correlation with the „barometer of the US economy“ is currently at its lowest since the March collapse.

Recall that in the last decade of November, bitcoin’s spot trading volume renewed its one-year high.