Bitpanda is promoting a bullish outlook despite recent headwinds in the crypto industry following a five-month rally that tripled Bitcoin’s value. In April, trading volumes on crypto exchanges fell for the first time in seven months, according to CCData.
Spot trading volume on so-called centralized exchanges excluding Robinhood, such as Coinbase, Binance and Kraken, tumbled 32.6% to $2 trillion last month, according to data from researcher CCData.
Spot trading volume on so-called centralized exchanges such as Coinbase Global, Binance and Kraken tumbled 32.6% to $2 trillion last month, according to data from researcher CCData. Derivatives trading volume also declined for the first time in seven months, falling by 26.1% to $4.57 trillion.
“Consistent with patterns observed in the last two cycles, trading activity on centralized exchanges typically slows in the two months following the Bitcoin halving event,” said Jacob Joseph, a research analyst at CCData. “Moreover, 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.”
Data from CCData shows that Binance continues to account for the larger part of the spot volume across centralized exchanges despite its share decreasing by 3.69% in April to 33.8%.
After spot volumes on centralized crypto exchanges more than doubled in March to reach nearly $2.5 trillion, they then fell in April to $1.6 trillion, according to The Block Data Dashboard. The last month-to-month decline occurred in September 2023. This matches trends found by analytics firms such as CCData, which also observed declines in spot volume for the first time in seven months.
The cumulative volume in spot and derivatives markets fell by 43.8% to $6.58 trillion, a sharp retracement from March’s record high of $9.12 trillion, according to a report by London-based digital assets data provider CCData.
“This decline followed unexpected macroeconomic data, an escalation in the geopolitical crisis in the Middle East, and negative net flows from U.S. spot bitcoin ETFs, leading to major crypto assets retracing the gains they made in March,” CCData said in a report shared with CoinDesk.
The trading volume in spot and derivative cryptocurrency markets fell by 44% to $6.58 trillion U.S. in April, according to digital asset data provider CCData.
CCData attributed the downturn in crypto trading to a drop in prices for digital assets such as Bitcoin, as well as rising bond yields, an escalation of geopolitical tensions, notably in the Middle East, and negative flows into U.S. spot Bitcoin exchange-traded funds (ETFs).
Coinbase registered $307 billion in spot trading volume in the first quarter, its highest since the last three months of 2021, according to researcher CCData, which notes the figures don’t include Coinbase’s over-the-counter trading related to institutional and ETF customers. Its market share of spot trading has increased to 5.35%, up from 5.05% in the year-ago quarter, CCData said.
Trading on Binance reached its highest level in almost three years last month, according to data provider CCData. A new CEO, Richard Teng, took the reins when Zhao pleaded guilty. The exchange is still home to more crypto trading than any competitor.
Binance is by far the world’s largest cryptocurrency exchange by trading volume, processing $18.1 trillion worth of trading volume in 2023, according to data from crypto market data firm CCData.
“In relation to CZ’s personal wealth ... he would still be able to retain his share in Binance, as well as maintain his crypto holdings which also contribute an unknown, yet material, amount to his overall wealth and net worth,” Joshua de Vos, research lead at CCData, told CNBC via email.
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