The volatility of Bitcoin (BTC) has been decreasing since mid-May. Despite rising to $69,000, network activity has not increased, reports the company Santiment.

Low Trader Activity

Spot trading volume is at its lowest level since October 2023. The average daily transaction amount dropped to $14 billion last week. The last time such low activity was observed was in the fall of last year when BTC was trading below $30,000.

Traders have taken a wait-and-see approach and are refraining from making new deals on major exchanges. Only 722,000 bitcoins moved through the network over seven days.

Growth in May

Nevertheless, BTC grew by about 11% in May. According to CoinGlass, the leading digital currency showed the most significant surge in the past five years last month.

Fundamental Factors

The stabilization of Bitcoin at $69,000 was the result of improving its fundamental positions. The support zone for the cryptocurrency is now between $66,900 and $68,900, analysts at IntoTheBlock note.

Weakening Institutional Interest

Last week, the inflow of capital into the spot bitcoin ETF market slowed down. The weakening activity of institutional investors has been another factor narrowing the price fluctuation range of the cryptocurrency.

Bitcoin volatility is decreasing, and trader activity is at its lowest since October 2023. Despite the growth in May, low market activity and weakening institutional interest limit the price fluctuations of the cryptocurrency.