On-chain data shows the Bitcoin spot volume has shown resilience recently while the rest of the cryptocurrency sector has seen a slump.
Altcoins Have Noted A Decline In Spot Activity Since Late JanuaryWhen the value of this indicator rises, it means more of the cryptocurrency is being shifted around on spot exchanges. Such a trend can be a sign that trading interest in the coin is going up.
On the other hand, the metric observing a decline suggests investor attention may be moving away from the asset as the amount of spot trades is trending down.
Now, here is the chart shared by Glassnode that shows the trend in the 7-day rolling mean value of the spot trading volume for Bitcoin, as well as combined that of the top 500 digital assets:
As is visible in the above graph, the aggregated spot volume for the top 500 cryptocurrencies has been on the way down since October of last year. This decline in trading activity has coincided with a drawdown for the market. Generally, periods with consolidation or bearish action tend to scare investors away, so the recent trend may not be surprising.
What’s interesting, however, is the trend followed by the spot volume of just Bitcoin. From the chart, it’s apparent that initially, the original cryptocurrency followed suit with the rest of the sector, but in February, its volume saw an uplift, including a huge spike that occurred alongside the sharp move down in the asset’s price.
As displayed in the chart, the US Bitcoin spot ETFs have seen their weekly netflow turn positive after a period of net outflows. The analytics firm explained:
While it remains early to confirm a structural shift in demand, a continuation of positive ETF flows would signal improving institutional sentiment and could re-establish ETFs as an important source of spot-side support for the market.
BTC PriceBitcoin has slowed down since returning back above the $70,000 level as its price is still trading around $70,400.
