Bitcoin spot volumes on crypto exchanges hits lowest levels since 2023

The Bitcoin ($BTC) spot volume has continued to capitulate in recent weeks, returning to the level seen in October 2023.

As of April 29, the Bitcoin spot volume, which represents the total value of $BTC traded on exchanges at the current market price, across major crypto exchanges, dropped below $5 billion, according to metrics from Glassnode.

Bitcoin spot volume on all exchanges. Source: Glassnode

The sharp decline in market participation persisted in April, despite the mild $BTC price recovery. Investors’ appetite for spot Bitcoin declined recently amid the prevailing macroeconomic backdrop, exacerbated by the geopolitical crisis.

Over the past month, Binance, the largest cryptocurrency exchange by traded volume, fell by nearly $25 billion, based on data from CryptoQuant. Meanwhile, Gate.io and OKX recorded a decline in Bitcoin spot volume of $13 billion and $6 billion, respectively.

What next for Bitcoin price amid record-low spot volume?

The significant decline in Bitcoin spot volume signals reduced market depth, a measure of liquidity. As such, the $BTC price remains highly sensitive to any shift in spot market flows.

In the past two days, BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) has led spot Bitcoin exchange-traded funds (ETFs) and other United States-based institutional investors in renewed selling pressure, as Finbold reported. With U.S. investors accelerating their $BTC distribution amid notable inflows to crypto exchanges, as Finbold noted, the bearish sentiment remains palpable.

$BTC/USD 7-day chart. Source: Finbold

Amid the reduced spot volume, $BTC price dropped 4.90% over the past seven days, trading at about $75,150 at press time. If institutional investors continue to sell amid low spot volume, a further plunge in $BTC prices could be inevitable in May, and vice versa.