Bitcoin trading volume is one of the important indicators that show the activity of currency trading and thus the activity of traders and track their movement with the price movement.

According to a recent report published by CryptoCompare, cryptocurrency trading volume fell by 17.6% last month, which is a surprise.

Many followers believe that October and the end of October are among the perfect months for the crypto market and that everything is perfect for Bitcoin.

However, things don’t seem to be the same, it is true that Bitcoin rose more than $5,000 from the beginning of October when the coin was trading at $10,500 to close the month above $15,000.

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But CryptoCompare has reported significant drops in total bitcoin spot trading volume on exchanges.

Trading volume on Binance reached $75.7 billion, a 33.1% decrease compared to September.

While Huobi Global recorded a trading volume of $41.7 billion, down by 31.4%.

Trading volume on OKEx, which last month suspended withdrawals after police arrested its co-founder, was also down 42%.

While the volume of bitcoin trading on the Coinbase platform decreased by 17.5%, the Kraken platform by 13% and the Liquid exchange by 4.3%.

Reasons for Low Bitcoin Trading Volume in October 2020:

Tell Pedro Febrero, an analyst at Quantum Economics, said that there are two possible reasons for the decline in the volume of bitcoin trading, namely:

First, It appears that an increasing number of altcoins are being traded, and that active Bitcoin addresses are being moved away from the exchanges by users.

CryptoCompare spokesperson Konstantin Tsavleris told CryptoCompare that the high volatility in September and the drop in bitcoin from $12,000 to $10,000 generated significant trading volume.

In October, there was an almost continuous rally, and this lack of price reversal, lack of volatility and volatility often led to a drop in trading volume on a monthly basis.

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secondly: Traders trade Bitcoin on decentralized exchanges such as Uniswap, and are likely to make the most of the liquidity fees that the platform offers.

According to the site “DeFi Pulse” The total amount of bitcoin locked into Uniswap has increased over the past 30 days from 24,000 bitcoins to 30,000 bitcoins.

Febrero said:

What this shows is a continuation of the annual trend of more and more users shifting from centralized platforms, such as Binance, to decentralized platforms, such as Uniswap.

Last summer, Uniswap’s daily trading volume exceeded once that of Coinbase Pro.

Then volumes are down 18% over the past month, according to Dune Analytics, but volumes are still much higher than they were before the summer.

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Read also:

The decline in the volume of Bitcoin trading in centralized exchanges and its growth in its decentralized counterpart

New Report: Only 13 Cryptocurrency Exchanges Have “Reliable” Trading Volume