- Bitcoin’s trading volume on Binance has sharply declined, increasing market vulnerability.
- Retail interest remains inconsistent, signaling uncertain short-term market sentiment.
After a brief period of optimism earlier in December, Bitcoin [BTC] has failed to maintain its momentum, slipping below the $100,000 mark and remaining stagnant in recent weeks.
The digital asset has seen little upward movement, with its price now standing at $92,790, reflecting a 13.2% drop over the past two weeks.
At this level, Bitcoin was trading 14.2% below its all-time high of $108,135 at press time, achieved earlier in December.
This lackluster performance has raised concerns among market participants, with both trading volume and retail interest showing noticeable declines.
A key factor contributing to this subdued performance is the significant drop in Bitcoin trading volume on Binance, the world’s largest cryptocurrency exchange.
Over the past week, trading activity on both spot and Futures BTC/USDT pairs has sharply declined.
Source: Glassnode
Centralized exchanges are vital in providing liquidity and maintaining equilibrium between supply and demand.
With reduced activity on Binance, the market is now more vulnerable, as lower demand makes it harder to counter selling pressure.
This imbalance creates an environment where even minor fluctuations in buying or selling activity could trigger substantial price swings.
Analysts recommend traders exercise caution and avoid impulsive decisions, as the current market sentiment remains fragile.
Mixed signals from retail activity
Beyond trading volume, other critical Bitcoin metrics provide further insight into the asset’s current market condition.
Data from Coinglass revealed that Bitcoin’s Open Interest—representing the total value of outstanding futures contracts—has decreased by 2.58% to approximately $57.66 billion.
Source: Coinglass
This drop indicates waning interest from Futures traders, typically interpreted as a sign of reduced speculative activity.
However, in contrast, Bitcoin’s Open Interest volume has surged by 71.7%, now valued at $109.92 billion.
This rise suggests that while fewer traders are active, those still participating in the market are taking larger positions, potentially indicating a degree of confidence in future price movements.
Moving forward, Bitcoin’s active address count offers a window into retail participation and on-chain activity. Active addresses reflect the number of unique Bitcoin addresses involved in transactions on a given day.
Earlier in December, active addresses hit a low of 787,000 before recovering to 984,000 on the 10th of December.
However, activity dropped again to 700,000 by the 25th of December before rebounding slightly to 826,000 as of the 30th of December.
Source: Glassnode
Read Bitcoin’s [BTC] Price Prediction 2024–2025
This pattern indicates inconsistent retail interest, with short bursts of activity followed by sharp declines.
Such fluctuations suggest a lack of sustained retail momentum, which remains crucial for driving Bitcoin’s price higher during bull cycles.
