Glassnode, a market intelligence firm, has reported a "notable decline in trade activity over the last quarter" across centralized crypto exchanges (CEXs), a sign of "reduced trading appetite" among Bitcoin traders.
Despite a recent recovery in the Bitcoin price, reaching $58,000 on September 10, investors "remain unconvinced" in the short term, according to Glassnode's analysis. The firm observed "contracting volumes across the board" on CEXs, which it sees as a key indicator of investors' speculative activity and price discovery.
Applying various metrics, Glassnode found that the monthly average trading volume on CEXs has fallen well below the yearly average, and that the spot volume momentum is continuing to diminish. Additionally, the net balance between buying and selling pressure, as measured by the CVD metric, indicates increasing selling pressure from investors over the last three months.
Despite the current market drawdown, traders remain hopeful that the fourth quarter of 2022 will bring a "sharp trend reversal" in Bitcoin trading activity.
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