Over the past week, Bitcoin‘s valuation has registered a depreciation of 6 percent, with its effects being immediately noticed with its market statistics.
According to Arcane Research’s recent report, the 7-day average trading volume for Bitcoin has drastically slowed down over the past couple of days. The report noted that on 22 January, the trading volume went down to $306 million, a figure that was recorded to be the lowest since 1 January.
Considering the fact that the average volume in January has been above $700 million for most of the month, such a huge drop in volume may underline an increase in the king coin’s volatility in the future.
Looking at the attached chart, it can be observed that the volume has periodically fallen since the start of December, despite registering a substantial hike on 14 January. The decreasing volume over the longer-term may also suggest that the market is due for a period of strong volatility.
A major downtrend was recently breached as well, a development that might have bullish implications in the coming weeks, spiking the trading volume again.
Additionally, the activity on Bitcoin’s blockchain remained flat as well, with the number of transactions and active addresses decreasing by about 1-2 percent.
The report added that over the past week, the average value of on-chain transactions dropped down to $4,676, registering a decline of 23.19 percent. However, the year-to-date valuation of average transactions is still up by 46.58 percent.
On-chain transactions slumped by almost 25%, something that suggested that a higher amount of smaller transactions were facilitated over the past week.
The present-day market performance comes on the back of a significant bullish period, with many in the crypto-community under the belief that the current corrections are long overdue after weeks of bullish performance.