Bitcoin trading volume in the second quarter of 2022 was one and a half times lower than in the second quarter of 2021, due to the sharp drop in the price of the cryptocurrency.
Bitcoin is hovering around the $20,000 price mark due to negative investor interest. According to Happen[In]crypto Research, the trade volume during the second quarter of 2022 was approximately $2.84 trillion. This was a 43% drop in trading volume of about $5.01 trillion recorded between April and June 2021.
Decline in trading volume reflects broader crypto market
A bearish trend in the overall decentralized finance (DeFi) market that led to a 60% drop in the crypto space’s overall market cap can be attributed to the decline in investor demand for bitcoin.
In April 2021, bitcoin trading volume was around $1.84 trillion and a one-day high of around $97.47 billion. With April, investor interest in the most popular cryptocurrencies waned, after declining volume from the first quarter of the year. In April, bitcoin trading volume stood at $830.12 billion, up from a one-day high of $39.39 billion.
In May 2021, BTC had a trading volume of $1.98 trillion, with a one-day high of around $126.36 billion. The collapse of the Terra ecosystem has resulted in a sharp drop in the prices of all digital assets. During this period, bitcoin trading volume fell to $1.09 trillion and hit a one-day high of $70.39 billion.
In June 2021, bitcoin trading volume was approximately $1.19 trillion, up from a one-day high of $58.96 billion in the month. BTC continued its decline by trading in the $17,708.62 and $31,957.28 ranges, despite a bullish forecast for June by several market commentators. BTC trading volume was approximately $923.94 billion, and a one-day high of $68.2 billion was recorded during the period.
How did the Q2 decline affect bitcoin?
Bitcoin opened with a trading price of $45,554.16 on April 1, reached a quarterly high of $47,313.48 on April 3, tested a quarterly low of $17,708.62 and closed the second quarter of the year at $19,784.43. Overall, this equates to a 56% decrease between the opening and closing prices of BTC in the second quarter of 2022.
For comparison, bitcoin opened on April 1, 2021, with a trading price of $58,926.56, reached a quarterly high of $64,863.10 on April 14, tested a quarterly low of $28,893.62 on June 22, and tested a quarterly low of $28,893.62 on June 22, 2021. It closed at $35,040.84. Overall, this represents a 40% drop between the opening and closing prices of Q2 2021.