Storm That Never Came

Signpost. Trade intensity has remained relatively high since the May sell-off, suggesting that while demand fell in tandem with price plunges, supply has declined even further. The fall of trade intensity from the local peak in mid-August of 2021 overlaps with a period of frequent price corrections, suggesting that the market is trying to unwind heated sentiments that have overshadowed the fundamentals of supply and demand dynamics. The price of Bitcoin is likely to extend its decline should trade intensity continues to fall.