- Grayscale’s court win did little to boost Bitcoin’s meagre trading volumes, Kaiko reports.
- Bitcoin, and the broader crypto market, have experienced ebbing volumes and volatility throughout the summer.
Happy Tuesday,
Grayscale’s win over the Securities and Exchange Commission last week may have caused a wave of celebration across social media and a volatility spike, but it did little to impact trading volumes. Bitcoin’s price has since surrendered most of its exchange-traded fund news-related gains, crypto boffins at Kaiko say.
Let’s dig in.
Muted volume
Bitcoin volume continues to fall, even positive news can’t do anything to improve the outlook.
Grayscale’s courtroom win versus the SEC caused a brief rally in crypto prices last week. Bitcoin hit $28,000 following the ruling, but by Friday these gains had been erased, as Kaiko research noted this week.
“The initial court ruling led to a flurry of buying, which we can see looking at the cumulative volume delta (CVD) on major pairs,” Kaiko’s wrote in its weekly Data Debrief newsletter, noting that the indicator flipped positive with Binance showing over $50 million on its Bitcoin Tether pair.
CVD is a trading indicator that helps investors understand the relationship between price moves and trading volume. Basically, it adds up the differences between the buying and selling volumes over time. A negative CVD means there are more sellers in the market.
“In a sign of just how muted trade volume has been the past few months, the Grayscale ruling was hardly able to boost Bitcoin’s volumes,” the report said, adding that “August 29 ranked just 504 out of 973 days (since the start of 2021) in terms of Bitcoin volume.”
Bitcoin’s average daily trading volume is around $7 billion this year, down from $13.8 billion and $11 billion in 2021 and 2022, respectively.
Crypto market movers
- Bitcoin dipped by 0.5% over the past 24 hours to trade just below $25,800.
- Ethereum slid just 0.1% as it trade around $1,600.
- Polygon’s MATIC and Dogecoin bucked the downward trend adding 3% and 1.5%, respectively.
