Institutional Bitcoin interest returns as trading volumes hit multi-year lows

Institutional investors are showing renewed interest in Bitcoin as analysts suggest the market may be nearing a bottom, even though trading activity remains weak. 10x Research said Bitcoin trading volume has fallen to a fraction of the levels seen around the U.S. president’s inauguration and last October’s flash-crash peak, while price action has tightened into one of the narrowest ranges in months. The firm said such low-volatility periods have historically been difficult to sustain. It also pointed to weak spot Bitcoin ETF inflows, continued stablecoin outflows and a four-week selling streak by Strategy as signs of softer demand, even as regulatory moves by the CFTC and SEC have helped improve sentiment among large investors.

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