It would be fair to say that the short term market performance from Bitcoin has been somewhat disappointing. Hovering just over $8,000, there has been minimal movement in the price of the cryptocurrency following its fall from $10,000.
Unfortunately, the picture that is being painted is a little worse than a stagnant price on the lower end of things. A look across a number of key metrics for Bitcoin shows that there is a real lull happening at the moment.
Perhaps the only positive to be seen in measuring Bitcoin’s performance is coming from the miner with the network’s hashrate still climbing. That being said, there are divided opinions as to what is driving Bitcoin’s hash rate.
Mati Greenspan, a senior market analyst for eToro and usually highly optimistic Bitcoin bull, has pointed out a selection of poor performing metrics for Bitcoin. He has looked across everything from trading volume to institutional derivatives, and has not found much joy.
Starting at a big one; the volume of Bitcoin being traded is unusually low. In the last 24 hours, the combined trading volume of the top 10 exchanges has seen the major cryptocurrency trade less than $200 million. To put that in context, when Bitcoin was on the boil, this number was closer to $4 billion.
Furthermore, the interest from institutional traders is also right down, with only six contracts of six BTC having traded today. This comes just a few days after Bakkt hit an all-time high of contracts that topped 224.
As for the more established CME contracts, their general volumes are far higher than Bakkt’s, but relative to their previous performances, the 1,859 contracts represents a very low number for CME.
Greenspan also looks at the peer-to-peer trading stats, which he sees as most worrying. He notes that the trading seen last week on LocalBitcoins showed the third-lowest reading since August of 2017.
“Looking at the bitcoin blockchain itself, we can see a huge drop in transactional volume. Worth noting that the rate has stayed steady at about 320k transactions per day, but the amount of money being sent is the lowest since May, below $800 million,” Greenspan concludes in his negative trip through the Bitcoin metrics.
However, parting thoughts from Greenspan actually paint this current lull in quite a positive light.
“Yes, this is a giant lull in crypto volumes across the board. Let’s not forget, though that bitcoin is one of the best-performing assets this year. After all this action, a period of stabilization is more than welcome. Bitcoin is not dead. It’s just resting,” explained the analyst.