Crypto trading volumes decline for first time since September 2023

U.S.
macroeconomic
factors
and
geopolitical
turmoil
seeped
into
crypto
sentiment
last
month,
resulting
in
a
volume
pullback
not
seen
in
over
30
weeks. 

CCData
analytics
showed
that
spot
trading
volumes
on
cryptocurrency
centralized
exchanges
(CEX),
like
Binance
and
Coinbase,
plummeted
by
32.6%
last
month
as
a
broad
correction
swept
through
market
sectors. 

Spot
trading
volume

dropped
to
$2
trillion
for
the
first
time
since
September
last
year.
Trading
volumes
for
derivative
tokens
also
fell
to
a
seven-month
low
of
$4.5
trillion,
marking
a
26.1%
decline. Crypto’s
largest
CEX
Binance
lost
market
share
as
trading
activity
retraced
from
highs
recorded
earlier
this
year.
Due
to
a
4%
drop,
the
platform’s
command
over
digital
asset
trading
reduced
to
33.8%.

According
to
the
data
provider,
the
trend
reversal
may
be
attributed
to
a
historical
pattern
common
after
Bitcoin
(BTC)
halvings.
Last
month,
a
change
went
live
that
cut
the
amount
of
newly
mined
tokens
by
50%,
slashing
revenue
for
Bitcoin
miners
and
bolstering
BTC
scarcity. 

CCData
researcher
Jacob
Joseph
wrote
that
CEX
trading
cooled
off
following
the
two
previous

halvings.
The
analyst
further
opined
that
ongoing
inflation
concerns
in
the
U.S.
shook
market
confidence,
as
investors
remain
skeptical
regarding
rate
hikes.

“The
higher-than-anticipated
CPI
inflation
data
and
the
escalation
in
the
geopolitical
tension
in
the
Middle
East
have
pushed
some
uncertainty
and
fear
into
the
market.
This
coincides
with
the
negative
net
flows
from
the
spot
Bitcoin
ETFs,
driving
the
price
of
major
crypto
assets
to
their
range
lows.”

Jacob
Joseph,
CCData
researcher

Earlier
this
year,
the
U.S.
SEC’s
approval
of
spot
Bitcoin
ETFs
solidified
bullish
sentiment
and
skyrocketed
crypto
prices
to
all-time
highs
(ATH).
Bitcoin
broke
its
previous
ATH
of
$69,000
from
the
peak
in
2021,
setting
a
new
record
of
over
$73,000
in
March. 

Wall
Street
leaders
like

BlackRock
and
Fidelity
amassed
over
$10
billion
in
assets
under
management
within
weeks
of
launching,
smashing
records,
but

outflows
have
persisted
in
recent
weeks. 

Although
the
general
market
has
seemingly
entered
a
post-halving
lull
and
spot
BTC
ETFs
struggled
to
woo
new
liquidity,
Palisade
co-founder
Manthan
Dave
told
crypto.news
that
prices
would
be
much
higher
at
the
year’s
close. 

The
expert
also
believes
that
spot

Ethereum
ETFs,
if
approved,
could
attract
more
capital
into
crypto
markets
and
offer
an
alternative
to
Bitcoin-underpinned
vehicles. 

Spot
bitcoin
ETFs
are
a
game-changer.
In
the
long
term,
they
will
raise
confidence
in
crypto
and
reduce
the
overall
market’s
volatility.
What
happens
when
the
Ethereum
ETF
launches
remains
to
be
seen.
It
will
certainly
bring
new
capital
as
Ethereum
is
more
“green”
than
bitcoin.
But
it
is
also
likely
to
draw
capital
out
of
the
bitcoin
ETF
as
investors
will
seek
to
diversify.

Looking
at
what’s
on
the
horizon,
it
is
likely
that
we
will
see
bitcoin
teasing
$100,000
by
the
end
of
this
year.

Manthan
Dave,
Palisade
co-founder