Why is Bitcoin volume so low? What effect on price?

[whyrqa]

Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)

What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.

I’m curious if anyone can give me some insight?

Low daily volume means more people are holding than trading it which will make the price to be increased in the long term but in short term it maybe easier to manipulate the prices but when someone starts to liquidate their funds will increase the demand back.

In fact, even at the beginning of 2020, many analysts talked about the shortage of Bitcoin in the market, especially their forecasts were based on the expectations of cryptocurrency users from a halving that took place in May 2020. Thus, a decrease in the volume of Bitcoin trading is possibly the result of a shortage in the market and as a result of this, one can really expect an increase in Bitcoin prices, the main thing is that demand be stable.

[Findingnemo]

Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)

What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.

I’m curious if anyone can give me some insight?

Low daily volume means more people are holding than trading it which will make the price to be increased in the long term but in short term it maybe easier to manipulate the prices but when someone starts to liquidate their funds will increase the demand back.

In fact, even at the beginning of 2020, many analysts talked about the shortage of Bitcoin in the market, especially their forecasts were based on the expectations of cryptocurrency users from a halving that took place in May 2020. Thus, a decrease in the volume of Bitcoin trading is possibly the result of a shortage in the market and as a result of this, one can really expect an increase in Bitcoin prices, the main thing is that demand be stable.

When 2020 began, no one expected that there will be a pandemic called covid 19 so they predicted bitcoin price on normal scenario but now we are in extremely depressed economy still bitcoin managed to hold its position which is really a great thing right?

If demand gets stable then the price will also become stable so we set that $10,000 is going to be the price range of bitcoin forever?

[South Park]

Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)

What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.

I’m curious if anyone can give me some insight?

This is natural and nothing to worry about, it is impossible for markets to trend all the time, in fact it is known that trending periods are in fact shorter than ranging periods, which is what we are facing right now, the market has entered a ranging phase which is why it seems unable to escape the narrow range in which it is now, but sooner or later this will change and the price will trend once again in ether direction, so there is no point in worrying about this, just watch the markets and wait until the fireworks begin again.

[STT]

Volume and volatility peak at turning points I think is a paraphrase of George Soros.   The low volume right now gives us no great certainty in current action, if we had high volume we could speculate if a top was forming or possibly a base to rise from but my take is this range ends in a sell after speculation because invariably there are always some expecting price to resolve upwards who get flushed out.   If we had a large amount of shorts I guess the opposite could be said to be true but so far as I know thats not the case.

[Yamifoud]

The volume really matters in trading but I don't think we need to worry about it because, in the first place we can't expect that Bitcoin's volume will keep that range, of course, it will change from time to time as the market demand had changed also. Well, it is pretty obvious how it changed the price and that particularly we can a declining price for this. But it doesn't mean we keep that falling sentiment, it will bounce back as well if there is a huge buying and selling activity happen in the market.

[stompix]

Usually, I follow some topics in Speculation just for fun to see how fast the situation at the start of the topic has changed, most of the time totally the opposite of what the author has predicted.
But this time, it's different. Now, assuming we believe the crap Coinmarketcap is feeding us, especially since coingecko tells the same story, this is the volume:



Flat! Flat! 14 days in which it has moved at maxim 20%, and 20% down.
Both sites show ~4 billion lost, from 19 to 15 and 23 to 19.

I have a feeling everybody is waiting to see what will happen with the global economy, will it recover or are we facing another major virus spread and go back in our houses and watch it crumble worse than it has before. But knowing BTC, I have a feeling that just a few moments after I said everyone is waiting suddenly we will see a jump in trades and price.

[exstasie]

I have a feeling everybody is waiting to see what will happen with the global economy, will it recover or are we facing another major virus spread and go back in our houses and watch it crumble worse than it has before.

Exactly. BTC is following the stock market pretty closely and I think it's obvious why. The markets are primed for a massive dump if lockdowns are put back in place. Governments are strongly opposed to that but the trend of hospitalizations will be the deciding factor, and the situation is pessimistic in several large states like California and Texas.

But knowing BTC, I have a feeling that just a few moments after I said everyone is waiting suddenly we will see a jump in trades and price.

That's usually how it goes. The range gets really tight and boring, everybody waits for the market to decide direction, traders set their stops on both sides of the range......then boom.

[kesmex]

Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)

What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.

I’m curious if anyone can give me some insight?

little volume because some traders have left the market after Bitcoin halving, there is no fomo anymore for now, the accumulated zone will be in the range of $ 7000- $ 9000 in my opinion

[pooya87]

Flat! Flat! 14 days in which it has moved at maxim 20%, and 20% down.
Both sites show ~4 billion lost, from 19 to 15 and 23 to 19.

it is all Flat. there is no "down" anywhere to be seen. the volume on average has been the exact same thing for the past 9 months because price has been in the same exact channel for the past 9 months.
with that in mind, each time there is a bigger swing than normal this volume also shoots up for example the rise in October, drop in November, another rise in February, another drop in March and finally the rise in end of April and beginning of May.
interestingly enough it is the same exact "Flat" pattern as December 2018 till April 2019 (price was stable then too).

it has nothing to do with COVID, stock market, ... and is all about simply price being stable and less day trades taking place. keep in mind that sites like coinmarketcap are not reliable not just because of fake volume but because they are reporting altcoin volume too (eg. BTC/someAlt vol) as total bitcoin volume, so when there is some shitcoin pump obviously that volume grows.

[imstillthebest]

Bitcoin volume is extremely low right now. It’s still higher than the 2017 bull run but way down from March 2020 highs (im assuming that was the RONA Crash of 2020?)

What effect does this low volume have on price? I understand what it really does is allow bigger swings to happen as less money is needed to move the market.

I’m curious if anyone can give me some insight?

little volume because some traders have left the market after Bitcoin halving, there is no fomo anymore for now, the accumulated zone will be in the range of $ 7000- $ 9000 in my opinion

id be more believe if you say they leave because of the corona virus but leaving because halving was over ? sounds akward to me . people are excited to see what halving brings on the price and thats the reason why people enter  . that causes fomo  .  the accumulated zone you list were fine , 7k usd is consider low and good buy point because price probably will return easily but 9k as buy point is still high knowing the increase wont likely exceed over 10k these times

[GreatArkansas]

Speaking of the volume, here is the chart especially the volume around 2017 - 2018 which we saw the all-time-high of Bitcoin way back there.
But if you see the volume last year (2019) at the time we reach almost $14,000 and after weeks, it dumps, the volume there is also high.
But for this year's volume, it's extremely low.

Even without this pandemic, we still experience these kind of situation in trading volume on Bitcoin, for me, it's still natural, even there is no pandemic.

[bitgolden]

Well, both of them probably played a role in this and I can't just discredit one or the other. Obviously the volume drop because of corona is a thing, there were tons of people that left because of the virus and the crisis it caused, however that was just one thing and I do not believe that it would be the whole 100% of the reason, maybe most of it but not all of it. You want to know why?

Because, crisis happened during middle of march and the volume didn't dropped until late(ish) may and that means volume started to go down after the halving. Not right after it, not like middle of may when it was right after the halving, it took about 15 days before it went down so I think that is an important part to keep in mind, but that doesn't change the fact that both of them had a finger on this.

[whyrqa]

It seems to me that the situation in the coming days will change dramatically, as many investors today will not lose sight of the cryptocurrency market, since for several days the stock market has been closing with a significant drop. Oil is falling in price, and the fear that this decline will continue due to an increase in the supply of raw materials in the market only increases interest in bitcoin. Perhaps that is why bitcoin has been showing green color for several days.

[Febo]

It seems to me that the situation in the coming days will change dramatically, as many investors today will not lose sight of the cryptocurrency market, since for several days the stock market has been closing with a significant drop. Oil is falling in price, and the fear that this decline will continue due to an increase in the supply of raw materials in the market only increases interest in bitcoin. Perhaps that is why bitcoin has been showing green color for several days.

Man I dont know Tesla share is at $1390. I dont see any stock market price drop. S&P500 is not even 10% under its ATH in February. I still see whole stock market in a huge baloon. For oil there is no reason to be high. Economy will contract at least till next year. What I do see is increased price of Gold. Gold for the first time went over $1800.