Magnifying the natural volume decline from Bitcoin’s recent correction. Is the likelihood new investors remaining in the market drawn in during the run up.
Are probably dollar cost averaging into positions with small periodic outlays. For example you can get started on Coinbase for as little as $10 every couple of weeks.
Even if they were inclined to. Given where transactions fees are at the amount they have invested makes moving value onchain from an exchange to a wallet impractical.
Meanwhile the price of Bitcoin finally rose to the point that long term Hodlers were willing to sell during the run up. In many cases coins mined directly to wallets were being offloaded. These sales required onchain transactions increasing volume during the parabolic run up.
With the price decline this source of demand for transactions has for the most part evaporated.
So
In aggregate current buyers are more likely to hold their coins on exchange. While long term hodlers are unlikely to sell at current prices. Leading to a reduced volume of transactions above and beyond what would naturally occur as a result of the price decline.
Resulting in the low transaction volumes we are seeing that is making investors nervous.
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