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As June begins, both traditional and crypto financial markets are gearing up for the typical summer trading lull. Data shows that the third quarter has seen the lowest trading volumes. The cumulative Bitcoin (BTC) trade volume has been over 40% below the highest-volume quarter.&nbsp; Bitcoin trading vol to sink? 
Data depicts that the trend has been particularly for BTC-USD volumes which hit a multi-year low of $44 billion in Q3 2023.
There are several factors that contribute to this decline in trading activity. This includes tightening regulations and deteriorating liquidity infrastructure. Despite these challenges, the launch of 11 spot ETFs in the US has already bolstered <a href="https://news.todayq.com/another-win-for-bitcoin-australia-set-to-launch-bitcoin-etf-with-a-twist/" rel="noopener noreferrer nofollow">BTC price</a> discovery and liquidity.
It has offered hope that this summer’s trading volumes may not drop as in previous years. However, the increasing interconnectedness between crypto and traditional financial markets could amplify the trend of low volume trading.
Last Tuesday, wallets linked with the defunct crypto exchange Mt. Gox transferred 140,000 BTC (approx worth $9.2 billion) as the bankruptcy estate prepares to repay creditors. This unexpected movement from long-dormant accounts triggered a wave of selling pressure in the market.&nbsp;
Bitcoin price surge took a hit over the past 2 months after gaining ETF approval from the SEC. BTC price is up by 7% in the last 30 days. It is trading at an average price of $68,875, at the press time. Mt Gox to hamper the momentum? 
Hourly analysis of trading volume revealed a substantial increase in activity on May 28, following the initial transfers from the Mt. Gox wallets. Between Tuesday and Wednesday of last week, hourly selling activity heavily outweighed buying, resulting in a significant negative CVD for BTC.
Mt. Gox will repay creditors in BTC, Bitcoin Cash (BCH), and fiat currency. The decision by creditors to sell their holdings will likely depend on the market’s capacity to absorb large orders. Fortunately, the market depth for BTC and BCH has improved by roughly 30%, reaching levels last seen before the FTX collapse, which may help mitigate potential price fluctuations if a sell-off occurs soon.
However, the liquidity disparity between Bitcoin and Bitcoin Cash is notable. Bitcoin Cash has significantly lower liquidity than Bitcoin, with a daily average depth of only $9 million, or 3.5% of Bitcoin’s depth.

Bitcoin faces summer drought, trading Vol to drop ahead?

Todayq News

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