Crypto Exchange Trading Volume Declines in April as Bitcoin Retreats from Record High
Trading volume on major cryptocurrency exchanges has experienced a significant decline in April, coinciding with Bitcoin’s retreat from its all-time high.
Spot trading volume on centralized exchanges like Coinbase Global, Binance, and Kraken dropped by 32.6% to $2 trillion last month, as reported by research firm CCData.
Additionally, derivatives trading volume saw its first decrease in seven months, falling by 26.1% to $4.57 trillion.
The surge in trading volume witnessed earlier in the year, following the introduction of US exchange-traded funds investing in Bitcoin, waned due to the tightening of financial conditions in the United States.
The Federal Reserve’s efforts to address persistent inflation challenges contributed to this shift.
Prior to the April 19 Bitcoin halving event, which reduced the supply of new coins by half, there was anticipation and excitement within the market.
Jacob Joseph, a research analyst at CCData, told Bloomberg that the decline in trading activity on centralized exchanges after the Bitcoin halving event aligns with patterns observed in previous cycles.
He further explained that the release of higher-than-expected Consumer Price Index (CPI) inflation data and escalating geopolitical tensions in the Middle East injected uncertainty and fear into the market.
These factors and negative net flows from spot Bitcoin ETFs led to major crypto assets reaching their range lows.
The decline in trading volumes also affected the spot market share of Binance, the world’s largest crypto exchange.
For the first time since September 2023, Binance’s spot market share dropped by almost 4% to 33.8%, reaching its lowest level since January, according to CCData.
The CME Group, a prominent derivatives marketplace, also
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