Bitcoin trading volume across multiple key exchanges appear to be dropping of late. The dwindling numbers of traders buying and selling the digital asset has led one market analyst to describe the situation as “dismal.”

In a lengthy Twitter thread posted earlier today, eToro senior market analyst Mati Greenspan (@MatiGreenspan) highlights the reduced numbers of Bitcoin changing hands across various exchanges of late. His post draws on volumes taken from the top ten digital asset exchanges, the dismal performance of the Bakkt platform since its launch, that BeInCrypto previously reported on, CME futures contracts, and peer-to-peer trading venue Local Bitcoins.

Falling Trading Volumes

According to data published by Messari Crypto, the 24-hour trading volume reported across ten leading exchanges is now just under $190.5 million. Although Bitcoin represents the highest trading volume of any non-stablecoin, US Dollar Tether’s real volume absolutely dwarfs this figure. The trading volume of the controversial, supposedly dollar-backed asset is reportedly just shy of $530 million. In his post, Greenspan reminds followers that during peak trading earlier this year, it was not uncommon to see Bitcoin trading volume exceed $4 billion a day.

Messari’s data has only been sourced from exchanges indicated in a report by Bitwise to be providing authentic trading volume. As BeInCrypto has reported on previous occasions, many trading venues are suspected of grossly inflating their own trading volume figures to make their platform’s more appealing to those creating altcoin projects. If they report large volumes, they can charge more for a listing at the platform.

Another source showing the “dismal” trading volumes is the newly-launched physically-settled Bitcoin futures by Bakkt. The much-hyped platform that went live last month has proved to be far less popular than many people had hoped, as BeInCrypto has also previously reported.

Also tying into the picture is a drop off in LocalBitcoins volume, a popular OTC Bitcoin exchange. Greenspan comments that last week’s figures from the peer-to-peer marketplace were the lowest since August 2017.

A Positive Future for Bitcoin

Despite calling current trading volume “dismal,” Greenspan does not seem overly concerned about Bitcoin’s future. The analyst highlights the drop off in usage of the BitMEX Bitcoin derivatives exchange as a sign that short term speculators are laying low for now, which is something of a positive after a particularly wild start to the year.

Another positive sign for the future of Bitcoin is its hash rate. As BeInCrypto has previously reported, the network is being supported by more computing power than ever before. Greenspan concludes:

“… miners are clearly confident.”

Despite the stark drop in trading volumes across some of the largest exchanges and platforms in the industry, Bitcoin is still up there with the very best performing assets for 2019. Greenspan states that such stability is welcome after the explosive start to the year that saw Bitcoin rise from around $4,000 to almost $14,000 in just a matter of months.

For the analyst, all of this data suggests:

“Bitcoin is not dead. It’s just resting.”

What do you think about the drop in trading volumes? Do you think it’s a sign of growing disinterest in Bitcoin, or is this just a breather before another liftoff? Comment below.

Images are courtesy of Shutterstock, Twitter.