Bitcoin Spot Volume Falls to 2023 Low as Rally Lacks Strong Demand
Bitcoin has climbed back above $71,600, but the price gain has not been matched by spot buying. As a major global cryptocurrency exchange, Binance’s trading volume is often viewed as an indicator of retail and broader capital participation. If the rally is driven mainly by news catalysts and the liquidation of short futures positions, price volatility and the risk of a pullback could increase.
The latest data show that Bitcoin spot trading volume on Binance has fallen to its lowest level since September 2023. Analysts said market activity in March was already close to levels seen during previous bear markets, while deposit activity on exchanges had also slowed markedly. Even with Bitcoin above $71,600, the market still lacks strong and sustained spot demand.
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The history behind this eventBitcoin Exchange Inflows Fall to 2023 Low, Easing Market Selling Pressure
Bitcoin inflows to exchanges are often viewed as an indicator of short-term selling pressure because transfers of BTC to platforms such as Binance and Coinbase typically suggest investors may be preparing to sell. Flows from medium-sized wallets have drawn particular attention since 2023 as a gauge of changes in market supply and traders’ risk appetite.
The latest data show that Bitcoin inflows from medium-sized wallets to Binance have fallen to their lowest level since 2023, indicating weaker immediate selling pressure. Inflows to Coinbase, however, remain elevated. Analysts say the divergence between the two exchanges points to a shift in market structure that could create the conditions for BTC to challenge $80,000.
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