Bitcoin spot trading volume has recently fallen below $8 billion, dropping to its lowest level since October 2023.

CoinDesk reported on April 29 that spot market participation is slowing even as expectations for further price gains grow.

Glassnode data showed Bitcoin's daily trading value topped $25 billion in early February and has kept falling since. It is the lowest level since October 2023, when Bitcoin was trading below $40,000.

Glassnode noted that a low-volume environment often goes hand in hand with shrinking market depth and greater sensitivity to shifts in capital flows. Market depth is a liquidity indicator measured by buy and sell orders stacked around 2 percent from the current price. If that figure declines, prices can move sharply on just a few large orders.

Options markets are not yet strongly reflecting the possibility of such higher volatility. The Volmex BVIV index, which shows Bitcoin's expected volatility over the next 30 days, fell below 42 percent on an annualised basis, marking its lowest level in three months.

Markets are watching the U.S. Federal Reserve's interest rate decision scheduled for later in the day. A hold is widely expected, but a key variable is how the policy statement addresses energy market disruptions and rising fuel prices. The report said a hawkish message warning about both growth and inflation risks could prolong a pause in rate cuts or raise the possibility of rate hikes, limiting gains in risk assets.

Marex analysts said Bitcoin is struggling to pick a direction ahead of the Fed decision, trading around $77,000. It may look calm on the surface, but positions are cautious and liquidity has thinned further, they said. They saw the next catalyst for price moves as more likely to come from macro factors than crypto-specific issues.

Energy variables were also cited as a burden. Marex said the less predictable energy prices become, the more sensitively risk assets may react to related news. Bitcoin recently rose more than 1 percent over 24 hours to around $77,800, and Ethereum, Solana and XRP posted similar gains. The dollar index stayed below 100, while U.S. 10-year and 2-year Treasury yields continued a modest rise.