Bitcoin Trading Volume Plummets 36% Despite $108,000 Price

Bitcoin has been trading at approximately $108,000, with attempts to breach the $110,000 level. Despite this consistent stay above the $100,000 mark, Bitcoin has faced mixed developments concerning its future price movements. One of the key factors influencing this is the drying up of trading volume, which is a crucial indicator in the market.

According to Glassnode data, the total spot and futures volume of Bitcoin has plummeted to $5.02 billion and $31.2 billion, respectively. This represents a significant drop of more than $36 billion in total volume. The maximum volumes were detected at the end of 2024 and the first quarter of 2025, followed by a drastic decrease beginning in April. This divergence between price and volume indicates a potential slowing down of the market, which could be attributed to recent tensions and fear of a reversal following the range above $100,000.

However, the fading activity could also be seasonal, a lack of market belief, or profit-taking. When volumes fall and the price rises, the chances of a pullback become high. For bulls, more durability in price gains would require a more powerful volume to corroborate the plausibility of rally continuation.

Retail investors have shown a sharp decline in activity, with wallets holding 0-10K declining by 10% in the 30-day demand, the lowest in a year. This divergence shows a declining flow in retail, which traditionally is at its highest in turning points. Their absence may be a warning that neither more sales nor excess demand would happen. In the meantime, this low retail activity suggested that capital was flowing into bigger wallets, indicating possible passive accumulation by whales.

This scenario is quite similar to the conditions in the middle of 2023, when a similar decrease in retail demand was followed by a 10-percent correction and then a bigger breakout. Retail frustration and whale hunger may help to decide the next serious steps of Bitcoin.

Long-term holders (LTHs) have been accumulating Bitcoin, as evidenced by the MVRV ratio of Bitcoin, which stood at 2.26, pointing toward long-term accumulation. Historically, this has been preceded by the occurrence of huge rallies. It is worth noting that during prior higher peaks, when the ratio exceeded 2.5, cycle tops occurred. This happened last during the end of 2021. The current pattern, as of press time, resembled the initial phase of a bullish movement as in early 2023. As such, there appears to be still more room to the upside. The strength in BTC’s prices seems to be maintained as long as the MVRV stayed above the trend.

The OTC balance also fell, which suggested a potential supply squeeze as scarcity stepped in. A drastic drop in supply usually ignites rallies if accompanied by demand. This, along with the accumulation by whales, points to more upside for Bitcoin in the near future.