Due to the steep decline in the prices of cryptocurrencies, Bitcoin trading volume in the second quarter of 2022 was one and a half times below that of the second quarter of 2021.
Bitcoin continues to hover around the $20,000 price mark due to negative investor interest. According to Be[In]Crypto Research, trading volume was approximately $2.84 trillion during the second quarter of 2022. This was a 43% drop in the trading volume recorded between April and June 2021 of around $5.01 trillion.
Fall in trading volume mirrors broader crypto market
A bearish trend in the overall decentralized finance (DeFi) market which led to a 60% slash in the overall market value of the crypto space can be credited for the fall in investor demand for Bitcoin.
In April 2021, Bitcoin trading volume was approximately $1.84 trillion and had a single-day high of around $97.47 billion. With April following the declining volumes from the first quarter of the year, investor interest in the most popular cryptocurrency tumbled. In April, Bitcoin trading volume was $830.12 billion, with a single-day high of $39.39 billion.
In May 2021, the trading volume of BTC was $1.98 trillion, with a single-day high of roughly $126.36 billion. The collapse of the Terra ecosystem led to a sharp decline in the prices of all digital assets. During this period, Bitcoin trading volume dipped to $1.09 trillion and had a single-day high of $70.39 billion.
In June 2021, Bitcoin trading volume was about $1.19 trillion, with $58.96 billion as the month’s single-day high. Despite bullish forecasts by several market commentators for June, BTC continued its downtrend by trading in the range of $17,708.62 and $31,957.28. BTC trading volume was roughly $923.94 billion, and a single-day high of $68.2 billion was recorded within the period.
How did the decline affect Bitcoin in the second quarter?
Bitcoin opened on April 1 with a trading price of $45,554.16, reached a quarterly high of $47,313.48 on April 3, tested a quarterly low of $17,708.62, and closed the second quarter of the year at $19,784.43. Overall, this equates to a 56% decrease between the opening and closing price of BTC in Q2 2022.
For the sake of comparison, Bitcoin opened on April 1 2021, with a trading price of $58,926.56, reached a quarterly high of $64,863.10 on April 14, tested a quarterly low of $28,893.62 on June 22, and closed the second quarter of 2021 at $35,040.84. Overall, this represents a 40% decline between the opening and closing price of Q2 2021.