Bitcoin spot trading volume drops to the lowest level since October 2023, and the market may face a risk of intense volatility

BlockBeats News, April 29 — The current daily Bitcoin spot trading volume has fallen to below $8 billion, the lowest level since October 2023 and far below this year’s February peak of over $25 billion. On-chain data platform Glassnode says that low trading volume usually means reduced market depth, making prices more sensitive to large capital flows.

Analysis indicates that when buy and sell order depth shrinks, even a small number of large orders can trigger sharp price swings, meaning the current low-liquidity environment may actually increase BTC volatility. However, the options market is still pricing in a “low volatility” scenario. Volmex’s BVIV index (measuring expected BTC volatility over the next 30 days) has dropped to below an annualized 42%, reaching a three-month low.

CoinDesk, citing comments from Marex analysts, says the market today is in a state of “seeming calm but real caution” ahead of the Federal Reserve rate decision. Liquidity is thin, and the drivers of the next leg of the market are more likely to come from macro-level factors rather than internal developments within the crypto industry.

The report also notes that the energy market is becoming an important variable affecting risk assets. With the UAE announcing its withdrawal from OPEC+ and Trump again taking a tough stance toward Iran, international oil prices have continued to rise, with Brent crude breaking above $114 per barrel. The market worries that if oil prices keep climbing, the yield on the 10-year U.S. Treasury could rise in tandem, further tightening financial conditions and weighing on risk assets including the crypto market.