Bitcoin
Bloomberg reveals reasons behind falling prices of Bitcoin, ETH, SOL, XRP and SHIB
Crypto trading volumes on major crypto exchanges fell massively in April. Trading volumes fell for the first time in seven months after the price of Bitcoin plummeted from an all-time high of $73,800, Bloomberg reported on Friday.
The situation continues into May as spot and derivatives trading volumes decline, causing Bitcoin and altcoins prices fall even further. Bitcoin price fell to $60,400 as comments from Fed officials and new data on inflation forecasts were against rate cuts.
Trading volumes fall amid macroeconomic concerns
Spot trading volume on major centralized exchanges such as Coinbase, Binance, KuCoin fell 32.6% to $2 trillion in April, according to data from CCData. Furthermore, derivatives trading volumes also fell 26.1% to $4.57 billion for the first time in seven months.
Trading volumes soared earlier this year in response to the approval and listing of US spot Bitcoin exchange-traded funds (ETFs) in January. April 19th Bitcoin halved it also failed to bring a sudden increase in the price of BTC or a recovery in the crypto market, and the price fell below $60,000.
“Consistent with patterns observed over the past two cycles, trading activity on centralized exchanges typically slows in the two months following the Bitcoin halving event,” it said Jacob Joséresearch analyst at CCData.
Additionally, lingering inflation and stagflation concerns faced by the US Federal Reserve have weakened market sentiment. Plus hotter CPI inflation data, the escalation of tensions in the Middle East and potential concerns about a bank run brought some uncertainty and fear to the market. The sentiment reversal caused negative net flows from spot Bitcoin ETFs.
Binance and CME Group reveal low trading volumes
The largest cryptocurrency exchange in the world Binance saw its spot market share fall 4% to 33.8% for the first time since September 2023 as trading volumes fell 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 centralized exchanges has slowed compared to its peak in March, it remains at a high level compared to volumes recorded in other months,” said Joseph.
Read too: See why the price of Bitcoin is falling drastically
BTC Price Awaits Another Breakout
CoinGape accurately predicted the recent crypto market recovery as Bitcoin chart patterns confirmed a breakout above the trendline. BTC Price it recovered from $60,630 to $62,585 in a few hours on Thursday after a 3-day descending trend line was broken on a lower time frame. The price reached a high of $63,446 today, with other altcoins such as ETH, SOL, XRPDOGE and SHIB also recovering.
However, pullback concerns still remain due to options expiry and economic data due out this week and next.
A breakout above the descending channel since mid-March will be bullish for BTC price to reach $100,000. This will be confirmation of Bitcoin’s post-halving price recovery, triggering a broader crypto market recovery.
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