The rally may not be sustainable, according to Arcane Research.
The recent spike in trading volume could signal that when there’s a market move, interest and activity quickly return.
The technical charts suggest further downside is likely as sellers react to extreme overbought conditions since March.
“Traders have certainly lost the appetite for bitcoin in this uncertain market environment,” Arcane Research wrote in a report.
Binance led competitors in May with a monthly trading volume of $2.46 trillion, up 49% from April levels.
Meanwhile, the cost of gas fees on the Ethereum network is near a three-month low.
Liquidations, China and even Elon Musk may be factors in markets falling.
Slowing bitcoin volume suggests retail traders are less active with their "stimmy" checks compared to 2020.
Angry users are taking to Twitter, putting the platform in the DOGE house.
Bitcoin's active addresses and trading volumes broke their previous all-time high set in late 2017.
A sharp drop in OKEx’s trading volume and stablecoin reserves – tether in particular – may reveal an ongoing exodus of its users after the popular crypto derivatives exchange unexpectedly halted all crypto withdrawal activities for about five weeks.
Saylor said the bitcoin market needs high-quality data, in an interview Tuesday.
CryptoCompare's latest report shows crypto derivative volumes were up 54% in August – likely a result of the rally in bitcoin's price.
Chainlink's link token has surged past bitcoin, becoming the most traded cryptocurrency of the past 24 hours on Coinbase Pro.
The ratio of low exchange volume to high on-chain transaction volume frequently corresponds with increased volatility.