Crypto Cumulative Monthly Trading Volume Falls to $6.58T Ending Seven Month Streak

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As a seasoned crypto investor, I’ve seen my fair share of market volatility and unpredictability. The sudden drop in trading volume in April, as reported by CCData, was an unexpected development that left many investors like myself feeling uneasy. The reduction in inflows to US Bitcoin ETFs and the escalation of geopolitical tensions were two significant factors that likely contributed to this trend.

I’ve noticed a significant decrease in crypto trading volume during April, marking the first decline in seven months. The cause of this dip might be attributed to several factors. In the United States market specifically, there was a noticeable reduction in inflows towards spot Bitcoin ETFs. Another contributing factor is the escalating geopolitical tensions that have been causing uncertainty and potentially deterring investors from entering the crypto market.

Crypto Trading Volume in April Fell from Record High

As a researcher examining data from CCData, a crypto data provider based in London, I’ve discovered that the total trading volume across spot and derivatives markets has decreased significantly. The current figure stands at $6.58 trillion, representing a substantial 43.8% drop compared to the all-time high of $9.12 trillion reached in March.

Last month, Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, experienced a decline of approximately 15%, dropping below the $60,000 mark.

“The drop in value occurred after surprising economic data on a global scale, intensified tensions in the Middle Eastern geopolitical situation, and substantial outflows from Bitcoin ETFs based in the US. As a result, major cryptocurrencies gave back their gains achieved in March.”

Binance remained the leading crypto exchange in terms of trading volume according to CCData’s report, but its dominance in both the spot and derivatives markets decreased to 41.5%. Notably, Binance saw a significant drop in April’s spot market trading volume, reaching $679 billion, marking a 39.2% decrease – the company’s first decline since September 2023. The reduction in Binance’s market share could also be attributed to the legal issues faced by its founder and former CEO, Changpeng Zhao. Recently, Zhao was sentenced to a four-month prison term for violating US money laundering laws. Since then, Zhao has stepped down as CEO, with Richard Teng taking over the role last year.

As an analyst, I’ve noticed that the crypto market has been rather volatile lately, with Bitcoin taking the lead after its halving last month. Last week, Bitcoin surged past $65,000 due to noticeable buying pressure suggested by a Doji candlestick. On Monday, the price began the day at $65,232, marking a 2.4% rise in the previous 24 hours. However, according to CoinMarketCap’s current data, despite a 5.5% increase over the last week, Bitcoin is now trading slightly above $61,000.

Ether Dump

Just like Ether (ETH), the second largest cryptocurrency by market capitalization, has experienced a significant drop in price, down to $2,975. This decline is attributed to large investors selling off their ETH holdings to invest in other altcoins. Notably, data from the analysis platform LookOnChain reveals that a well-known whale, Machi Big Brother, bought 798,157 FRIEND tokens for $2.05 million using 661 ETH within a day. A day prior, Machi Big Brother had spent $3 million on purchasing 1.39 million FRIEND tokens by using 962 ETH. It’s worth mentioning that another whale reportedly bought 423,196 FRIEND tokens for $1.2 million using 384 ETH.

The mistrust toward Ethereum arises from the doubt surrounding the SEC’s unwillingness to endorse spot Ethereum Exchange-Traded Funds (ETFs). Notably, Grayscale Investments has withdrawn its application for an Ethereum futures ETF.

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2024-05-09 15:20