Bitcoin volume drops 16% with price aiming for $72K

Bitcoin (CRYPTO:BTC) has experienced a 16% drop in spot trading volume since October 1, raising concerns about market sentiment.

However, according to Bitget's chief crypto analyst Ryan Lee, the decline is "explainable" given the broader macroeconomic uncertainties that are affecting investor behavior.

Investors appear to be cautious, with many waiting on the sidelines as they anticipate how global events will shape the market.

According to Lee, it may be too early to judge Bitcoin's performance for the rest of October.

He noted that investors are "largely reactionary to macro events," such as expectations of future Federal Reserve rate cuts and uncertainties surrounding the U.S. presidential election.

These factors are contributing to a risk-off approach, where investors prefer not to tie up their capital during a period of potential volatility.

CryptoQuant contributor Axel Adler echoed a similar sentiment, pointing out that the drop in Bitcoin's trading volume doesn’t necessarily indicate how the rest of October will unfold.

"Just because Uptober started this way doesn’t mean it will end the same," Adler remarked.

Despite the decrease in trading volume, Lee remains optimistic about Bitcoin's short-term potential.

He highlighted that BTC has maintained its support level above $60,000, which could lead to an 18% price surge, bringing the price within the $72,000 range.

"The anticipation for Fed interest rate cuts and market rebound may come from Bitcoin’s historically optimistic Q4s," Lee explained.

Institutional investors, according to recent data from Farside, continue to invest heavily in Bitcoin.

In the past 10 months, U.S.-based spot Bitcoin ETFs have attracted over 18,500 BTC, worth more than $1.1 billion at current prices, underscoring continued confidence in the digital currency despite market fluctuations.

At the time of reporting, the Bitcoin price was $61,986.82.