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Bitcoin Boredom Takes Derivatives Trading Volume To One-Year Low

Bitcoin over the last couple of weeks has been in a perpetually flat state. As expected, this has spilled into the market across all spheres and all bitcoin and its related products were feeling the heat. The futures markets were not left out as volume had begun to decline. By last weekend, bitcoin futures volumes had declined so much that it had hit a new yearly low.

A Bad Time For All

Bitcoin futures volume had picked up tremendously in the bull market of 2021. However, as the crypto winter rolled around, the volumes had begun to fall. There were points where recoveries were recorded but not enough to guarantee a substantial and continued rise in volumes.

This last weekend, the market momentum was particularly low. It swung both ways as both inflows and outflows were not recorded in ETFs such as the BITO. As a result, the bitcoin futures volume had fallen to its lowest point in the last year.

The same was the case across the perpetual swaps for the weekend timeframe. The decline in activity led to the lowest volumes in a one-year period. The market stayed completely flat and funding rates continued to trend in the neutral territory.

Bitcoin futures volume

BTC futures volume reach one-year lows | Source: Arcane Research

This decline in trading volumes across these important spheres in the bitcoin market seemed to have set a tone of low momentum for the digital asset going into the new week. However, as another weekend rolls around, bitcoin has proven its ability to deviate from even the most evident of trends.

Bitcoin Rebounds After Lull

The bitcoin rebound that was recorded in the middle of the week has been nothing short of phenomenal. After trending just above $19,000 and struggling to maintain its value, the cryptocurrency had been able to mount a recovery that pushed it toward the $21,000 level once more.

Bitcoin price chart from TradingView.com

BTC recovers to mid-$20,000s | Source: BTCUSD on TradingView.com

What this shows is a complete deviation from the expected price movements for the digital asset. It also means that there will be a bounce back from the futures and perpetual swaps volume, as well as trading volumes across the market.

Following the price surge, bitcoin had already marked an over 130% increase in its trading volume in a 24-hour period. As the market draws into another weekend, expectations have been reoriented and a weekend of high volatility is now expected for the crypto market. 

Bitcoin has now built support at $20,500 going into the weekend. Institutional investor interests are expected to reignite during this period, which will likely see ETFs such as the BITO record better volumes compared to last weekend. 

Featured image from Bitcoin Magazine, charts from Arcane Research and TradingView.com

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