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

Noelle Acheson, head of markets at Genesis Global Trading, has an explanation for why bitcoin trading volumes are down. She believes that, on one hand, the Fed's tightening monetary policy has led to less liquidity in the market, and on the other hand, higher interest rates have increased the opportunity cost of investing in non-equity assets such as bitcoin, meaning that the cost of investment is rising but potential returns are declining.

Noelle Acheson also noted that about 76% of bitcoins have not moved in the past year.

Glassnode's data also shows that interest in bitcoin is light. The data on the chain shows that the number of users holding bitcoin has not grown much.

Meanwhile, a report from Bank of America on April 12 showed that bitcoin outflows totaled $1.2 billion in the previous week, the most so far this year.

As of writing, bitcoin prices briefly fell below $40,000 and now stand at around $39,800.