- Bitcoin’s Open Interest has reached its lowest point in nearly five years, reaching its lowest point since the Terra cryptocurrency collapse in May.
- The drop began on August 17th following a significant sell-off of the world’s largest cryptocurrency, triggered by rumors suggesting SpaceX had offloaded its Bitcoin holdings.
- CryptoQuant reported Bitcoin’s trading volume hit its lowest mark in nearly five years during the current month.
Bitcoin Open Interest is on the decline, reaching its lowest point since the Terra cryptocurrency collapse back in May of the previous year, according to the findings of blockchain analytics company Kaiko. This drop in Open Interest began on August 17th following a significant sell-off of the world’s largest cryptocurrency.
This situation has sparked concerns about a potential further decrease in the value of Bitcoin. The initial sell-off was triggered earlier in August by rumors suggesting that SpaceX had offloaded its Bitcoin holdings. This news led to a negative market response, exacerbating an already ongoing market slowdown.
On a related note, CryptoQuant recently shared data revealing that Bitcoin’s trading volume hit its lowest mark in nearly five years during the current month. With repeated downward trends, investors are understandably cautious about investing in cryptocurrency and are holding off until they see compelling reasons to re-enter the market.
While the overall market slowdown has certainly influenced investors’ decision-making, the increased regulatory scrutiny that various countries have imposed on crypto institutions has also contributed to the prevailing sense of uncertainty surrounding cryptocurrencies. Notably, the U.S. Securities and Exchange Commission has taken action against major players in the crypto space, such as Binance, Coinbase, and Ripple.
In a different context, a report has highlighted that long-term holders of Bitcoin are leveraging the price drop to acquire more tokens. Moreover, a significant proportion of these holders are maintaining their positions rather than actively trading or using the tokens for lending purposes.
Despite the turbulent state of the crypto market, it appears that these long-term holders remain undeterred. This also indicates that many of these holders are confident in the token’s potential over the longer term.
According to data from CoinMarketCap, Bitcoin is currently trading at $26,008 per unit, reflecting a 0.38% decline over the past 24 hours. The price chart data also suggests a slight decrease in the token’s price over the past week.
In terms of trading volume, Bitcoin has experienced a 5% increase in the past 24 hours, with a trading volume of over $10 billion. The total market capitalization of the token currently stands at $506 billion.