Bloomberg Explained the Reason Why Bitcoin, ETH, SOL, XRP, SHIB Prices Crashed
Crypto trading volumes on major crypto exchanges plummeted in April. Trading volumes fell for the first time in seven months after the Bitcoin price fell from its all-time high of $73,800, Bloomberg reported Friday.
This situation continues in May as spot and derivative transaction volumes decrease, causing Bitcoin and altcoin prices to decline further.
Trading Volumes Fall Amid Macroeconomic Concerns
According to CCData data, spot transaction volume on major central exchanges such as Coinbase, Binance and KuCoin decreased by 32.6% to 2 trillion dollars in April. Additionally, derivative transaction volumes decreased by 26.1% to $4.57 trillion for the first time in seven months.
Trading volumes surged earlier this year in response to the approval and listing of US spot Bitcoin exchange-traded funds (ETFs) in January. The April 19 Bitcoin halving also failed to provide a sudden increase in BTC price or recovery of the crypto market, and the price fell below $60,000.
“Consistent with patterns observed over the last two cycles, trading activity on centralized exchanges generally slows in the two months following the Bitcoin halving event,” he said. Jacob YusufResearch analyst at CCData.
Additionally, sticky inflation and stagflation concerns faced by the US Federal Reserve have weakened market sentiment. Additionally, hot CPI inflation data, rising tensions in the Middle East and potential bank transaction concerns have created some uncertainty and fear in the market. The reversal in sentiment resulted in negative net flows from spot Bitcoin ETFs.
binance and CME Group Announce Low Trading Volumes
Binance, the world’s largest crypto exchange, saw its spot market share drop 4% to 33.8% for the first time since September 2023 as trading volumes decreased significantly.
Additionally, CME Group, the largest Bitcoin derivatives exchange, saw crypto trading volume drop nearly 20% to $124 billion.
“Despite this, although trading activity on central exchanges has slowed compared to the peak in March, it remains at a high level compared to volumes recorded in other months,” Joseph said.
BTC Price Awaits Another Breakout
parofix correctly predicted the recent recovery in the crypto market as Bitcoin chart patterns confirmed a breakout above the trend line. BTC price rose from $60,630 to $62,585 in a few hours on Thursday after the 3-day descending trend line was broken in a lower time frame. The price rose to $63,446 today as other altcoins such as ETH, SOL, XRP, DOGE, and SHIB also recovered.
However, withdrawal concerns still remain due to options expiration and economic data coming this week and next week.
A break above the descending channel since mid-March would signal an upward move for BTC price to reach $100,000. This will be confirmation of the Bitcoin price rally after the halving, triggering an rally in the broader crypto market.
So read:
✓ Share:
Varinder has 10 years of experience in the Fintech industry and has been dedicated to blockchain, crypto and Web3 development for over 5 years. A tech enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles, and articles. Varinder believes in the great potential of future innovative technologies with parofix Media. He currently covers the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
#Bloomberg #Explained #Reason #Bitcoin #ETH #SOL #XRP #SHIB #Prices #Crashed
