What's Happening? Bitcoin daily trading volume takes a nosedive

Bitcoin daily trading volume has seen a sharp decline as interest rates have risen.

According to the data, the 30-day cumulative moving average trading volume of bitcoin on major exchanges Coinbase, Bitfinex, Kraken and Bitstamp is at its lowest level since August 2021.

Over the past month, average daily bitcoin trading volume on these exchanges has been just over $1 billion, down nearly 60% year-over-year from last May's average daily volume of $2.57 billion.

With the Federal Reserve and other central banks fighting inflation by raising interest rates, the rising cost of capital has prompted many investors to start rethinking their investment options.