Summer trading slump: Bitcoin’s price strong but liquidity thins

Bitcoin ($BTC) is holding close to its all-time high of $110,000, but trading activity is slowing down. Analysts are starting to talk about a possible summer cooldown for the cryptocurrency market.

Data from Glassnode, a blockchain analytics company, shows that both spot and futures trading volumes have dropped sharply. 

Spot trading volume has fallen to $5.02 billion, and futures volume is now at $31.2 billion. These are the lowest levels seen in over a year.

At the same time, the Bitcoin options market is showing very low volatility. According to Glassnode, implied volatility across all options contracts – whether short-term or long-term –  is nearing all-time lows. The last time volatility was this low was around the middle of 2023.

Low volatility often suggests that traders are expecting less movement in prices. This is typical for the summer period when many market participants go on holiday and overall activity drops.

There is also a noticeable gap between Bitcoin’s rising price and the falling trading volumes. This divergence suggests that there may be less liquidity in the market. When markets are thin, even small trades can have a big impact on prices.

Despite the reduced trading, Bitcoin has held near $110,000, which some analysts see as a sign of strength. But others are cautious. They say the market could enter a period of sideways movement, or “consolidation”, as traders wait to see what happens next.

There are also signs of profit-taking, especially after Bitcoin’s recent rally. Some investors may be locking in gains. A slowdown in trading can also lead to higher risk, as sudden moves in price become more likely in a low-volume environment.

Still, many investors remain positive. CoinShares recently reported that digital asset investment products saw more than $1 billion in inflows last week. Bitcoin was the main beneficiary, attracting $790 million. Ethereum also saw $226 million in inflows.

Analysts at CryptoQuant believe the Bitcoin bull run is still intact. But they also say the current low activity and volatility suggest a possible trading range ahead. Bitcoin might break above $112,000 or fall back toward the $100,000 support level, which would be a key area to watch.

Strategy slows down Bitcoin buying as market cools

While Bitcoin remains close to its highest-ever price, one of its biggest supporters is slowing down. Strategy – previously known as MicroStrategy – has paused its regular Bitcoin purchases for the first time since early April.

Strategy is the world’s largest corporate holder of Bitcoin. It owns 597,325 BTC, which is roughly 2.84% of the total supply. The company’s average purchase price is $70,982 per coin, and the total value of its holdings is now close to $65 billion.

The firm has benefited from the recent price surge. Its Bitcoin holdings added $14.05 billion in unrealised gains in the second quarter of 2025 alone. However, Strategy has cut back its pace of buying. It went from acquiring 171,000 BTC in December 2024 to just 16,000 BTC in June 2025.

Last week, the company did not buy any Bitcoin – a pause that followed 12 straight weeks of acquisitions. According to filings, Strategy did not sell any common or preferred shares either. The pause appears to be part of an end-of-quarter adjustment.

“Some weeks you just need to HODL”, said Executive Chairman, Michael Saylor, in a post on X.

The firm’s halt in purchases came after Bitcoin dipped to $105,400 last Tuesday before briefly climbing back over $110,000. It’s not the first time Strategy has paused buying. Earlier in the year, the company also held back when Bitcoin dropped below $87,000.

Meanwhile, Strategy has announced a new $4.2 billion at-the-market (ATM) offering. This allows the company to issue and sell shares of its STRD preferred stock to raise funds. 

The money can be used to buy more Bitcoin or for general corporate purposes, including paying dividends on its other preferred shares – STRK and STRF.

Saylor has called STRD the “fourth gear” of the company’s Bitcoin engine. It offers high yield and is over-collateralised, aimed at long-term investors looking for returns with some level of protection.

So far, Strategy has raised nearly $1 billion from its preferred share programmes. The total remaining ATM capacity across all programmes is $44.8 billion, giving the company plenty of room to raise more funds in the future.

Even though Strategy is buying less, its previous purchases are paying off. In 2025 alone, the company gained over 88,000 BTC in value, equal to around $9.6 billion. For the full year 2024, Bitcoin gains added up to 140,538 BTC or $13.1 billion in fiat terms.

Still, market analysts point out that Strategy’s weekly purchases – even when above the 450 BTC daily issuance post-halving – are not enough to make up for the sharp drop in market demand. CryptoQuant reports that total demand for Bitcoin has fallen by 895,000 BTC over the past month.

The Bitcoin mempool, which tracks unconfirmed transactions, is also almost empty. This points to very low retail trading activity. ETF purchases have also dropped, going from 86,000 BTC in December 2024 to 40,000 BTC in the past month.

According to Bloomberg, the recent pause in Strategy’s buying did not move its share price much. MSTR shares were trading above $400 at the start of the week, slightly recovering from earlier losses.

However, there are some warning signs. Anthony Scaramucci, speaking to Bloomberg, said corporate treasury strategies like Strategy’s could be reversed if Bitcoin prices drop sharply. 

A report from Standard Chartered in June also noted that half of companies holding Bitcoin could see losses if prices fall below $90,000.

Even so, Standard Chartered maintains a long-term bullish outlook. It still expects Bitcoin to reach $200,000, driven by ongoing institutional buying and tighter supply. Strategy, with its large holdings, remains a key player in this space.

More public companies are buying Bitcoin

While Strategy may be slowing down, other companies around the world are still adding Bitcoin to their balance sheets. Several recent purchases show growing interest from both Asian and European firms.

The Blockchain Group, based in France, announced the purchase of 116 BTC for about €10.7 million ($12.55 million). This brings its total holdings to 1,904 BTC. Deputy CEO, Alexandre Laizet, said the company’s 2025 Bitcoin yield had reached 1,348.8%.

In the UK, the Smarter Web Company bought 226.42 BTC for £17.9 million ($24.34 million), at an average price of $106,750 per coin. Its year-to-date yield is an impressive 26,242%.

Meanwhile, Japan’s Metaplanet acquired 2,204 BTC for $237 million, bringing its total to 15,555 BTC. The company uses bonds and equity sales to fund its Bitcoin purchases. Its shareholder base has doubled in the last three months.

Metaplanet also tracks a metric called “BTC Yield” to measure the impact of Bitcoin on shareholder value. Blockchain Group uses a similar approach, showing how important digital assets are becoming for company strategy.

In the United States, Semler Scientific reported the purchase of 187 BTC for $20 million. The company now holds 4,636 BTC, bought at an average price of $92,753. It has $72 million in unrealised gains so far, according to recent filings.

These moves are part of a larger trend. Public companies now hold over 725,000 BTC globally — a 135% increase from a year ago. Much of this growth is coming from firms in Europe and Asia, where companies are turning to Bitcoin as a hedge against inflation and currency risks.

Experts say this momentum is likely to continue. While smaller firms need to manage their risk carefully, more and more companies are seeing Bitcoin as a useful asset for long-term value.

As competition for Bitcoin increases, so does the pressure on other firms to join in. The limited supply of Bitcoin – capped at 21 million coins – means that early adopters may benefit the most. 

And with growing interest from institutional investors and changing regulations around the world, corporate demand could play a major role in shaping the next phase of Bitcoin’s journey.