Bitcoin
and other cryptocurrencies ros Friday, but digital assets remained in a stagnant patch marked by some of the lowest trading volumes in years—a grim sign for wider interest in the crypto space that would support prices.
The price of Bitcoin has gained 1.6% over the past 24 hours to $26,100, crossing back above the $26,000 level around which the largest digital asset has traded for much of the past month. Bitcoin’s spike to $28,000 last week after a pro-crypto court ruling was short-lived, with prices falling back to the $25,000 zone before recovering.
“We’re treading through another week of lateral trading, tinged with a bearish undertone. The market seems poised, awaiting a pivotal event to catalyze a decisive move. In the interim, expect the horizontal trend to persist,” said Rachel Lin, CEO of trading platform SynFutures.
Bitcoin is in a rut, lacking the excitement of the
Dow Jones Industrial Average
and
S&P 500
in the stock market as it notched the lowest volatility in its history in recent months.
A lack of the action characteristic of cryptos seems to be keeping traders away, with spot Bitcoin trading volumes in August sliding to their lowest levels since March 2019, when Bitcoin was worth around $4,000, according to digital asset data firm CCCData.
“There is paltry trading activity taking place right now. Retail demand seems rather low, as evidenced by the data showing low volumes on exchanges,” said Sacha Ghebali, a director at digital asset information group The Tie.
Falling volumes bode ill for Bitcoin, which has risen in the past on the back of retail investors flocking to the space for its volatility. Low volumes suggest a muted dynamic in markets, with prices failing to move much even on the back of macroeconomic and crypto-native catalysts that should cause meaningful swings.
Beyond Bitcoin,
Ether
—the second-largest crypto—rose less than 1% to $1,640, Smaller cryptos, or altcoins, were more mixed, with
Cardano
up less than 1% and
Polygon
slipping 3%. Memecoins were lower, with both
Dogecoin
and
Shiba Inu
down slightly.
Write to Jack Denton at [email protected]
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