Bitcoin Spot Trading Volume Hits Lowest Level Since October 2023, Market May Face Significant Volatility Risk

BlockBeats News, April 29th, the current Bitcoin spot trading volume has dropped to less than $8 billion, the lowest level since October 2023, far below the peak of over $25 billion in February this year. On-chain data platform Glassnode stated that low trading volume usually indicates a decrease in market depth, making the price more sensitive to large fund flows.

Analysis points out that when the buy and sell order book depth shrinks, a small number of large orders may trigger sharp price fluctuations, meaning that the current low liquidity environment may actually increase BTC volatility. However, the options market is currently betting on a "low volatility" scenario. Volmex's BVIV index (measuring BTC's expected volatility in the next 30 days) has dropped to below 42% on an annualized basis, reaching a nearly three-month low.

CoinDesk cited Marex analysts' views that the current market is showing a "superficial calm but actual caution" state ahead of the Federal Reserve interest rate decision, with thin liquidity. The next round of market drivers is more likely to come from the macro level rather than internal factors within the crypto industry.

The report also pointed out that the energy market is becoming a significant variable affecting risk assets. As the UAE announced its withdrawal from OPEC+, coupled with Trump's tough remarks on Iran again, international oil prices continue to rise, with Brent crude oil surpassing $114 per barrel. The market is concerned that if oil prices continue to rise, the U.S. 10-year Treasury yield may rise in sync, further tightening financial conditions and impacting risk assets, including the crypto market.