Bitcoin has experienced a significant drop in spot and futures volumes, which signals a potential summer lull.
Low volatility and thinning liquidity could see a consolidation phase with a potential pullback to $100,000.
A resurgence in trading volume could push BTC above $110k and its ATH.
Bitcoin (BTC) continues to hover near the psychological $110,000 level as well as its all-time high, but market analysts are pointing to a potential summer slowdown.
According to blockchain data provider Glassnode, trading volumes are experiencing a significant decline, raising questions about the cryptocurrency’s short-term trajectory.
With spot volume dropping to $5.02 billion and futures volume falling to $31.2 billion, both the lowest in over a year, the stage appears set for a period of reduced market activity.
BTC options markets suggest a slowdown
Glassnode’s recent market outlook highlights a trend in the Bitcoin options market where implied volatility across all expiries (ranging from one week to six months) is approaching all-time lows.
The analytics platform says the levels seen today are back to those seen in mid-2023.
Reduced volatility suggests that traders are anticipating less price movement in the near term, a common occurrence during the summer months when market participants often take holidays and trading activity wanes.
Notably, data shows a contrast between Bitcoin’s price, which has steadily climbed toward $110,000, and the diminishing spot and futures volumes.
The volumes appear to have peaked and point to a downturn, with the divergence indicating thinning liquidity.
$BTC options market is echoing the summer slowdown – implied volatility across all expiries (1W to 6M) is nearing all-time lows.
We’re now pricing some of the lowest vol levels since mid-2023, despite price hovering near ATHs. https://t.co/qBc0rpVCWm pic.twitter.com/3ANnNmyI9I— glassnode (@glassnode) July 7, 2025
The options market’s low volatility pricing reflects a cautious outlook, potentially signaling a consolidation phase as the market digests recent gains.
Bitcoin price prediction
A lull is further contextualized by historical patterns, and traders could be looking for profits after significant rallies.
However, the low-volume environment also heightens the risk of sharp price swings, as even modest orders could trigger outsized reactions in a thinly traded market.
On the bullish side, Bitcoin’s ability to hold above key support levels and near $110k despite declining volumes suggests underlying strength.
Potentially, this strengthens long-term optimism amid institutional adoption, including likely moves by Elon Musk.
Notably, CoinShares has shared details showing digital asset investment products saw over $1 billion in inflows last week.
This marked the 12th consecutive week of inflows, with Bitcoin recording $790 million in inflows over the week.
Other assets such as Ethereum saw $226 million.
Amid this, analysts at CryptoQuant say the BTC bull run remains intact.
Bitcoin MVRV Bounces off 365-Day Average: Trend Still Alive?
“Historically, as long as MVRV stays above its SMA365, the uptrend tends to continue.
MVRV > SMA365 → Bull trend intact.” – By @burak_kesmeci pic.twitter.com/iwxEQ9t3OH
— CryptoQuant.com (@cryptoquant_com) July 7, 2025
However, the low implied volatility and reduced trading activity point to a consolidation range.
BTC could thus break to a new ATH above $112k or see a short-term pullback to support.
In this case, the psychological level of $100k will be key.
