Cryptocurrency News

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Crypto Spot Trading Slows In April

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    <p><span data-preserver-spaces="true">For the first time in seven months, the volume of cryptocurrency spot trading experienced a decline last month.</span></p>
    <p><span data-preserver-spaces="true">Decreased likelihood of rate cuts by the central bank and a reduction in the inflows into spot bitcoin ETFs in the U.S. influenced this trend, as </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">noted by Seeking Alpha</span></a><span data-preserver-spaces="true"> on Saturday (May 18), drawing on data from </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">CCData</span></a><span data-preserver-spaces="true">.</span></p>
    <p><span data-preserver-spaces="true">The spot market volume across exchanges like </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">Coinbase</span></a><span data-preserver-spaces="true">, </span><a target="_blank" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">Binance</span></a><span data-preserver-spaces="true">, and </span><a target="_blank" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">Kraken</span></a><span data-preserver-spaces="true"> saw a drop of 32.6% to $2.01 trillion in April. Similarly, derivatives trading volume decreased by 24.1% to $4.57 trillion, marking the first decline in three months.</span></p>
    <p><span data-preserver-spaces="true">Factors such as unexpected macroeconomic figures, escalating tensions in the Middle East, and dwindling net inflows from U.S. spot Bitcoin ETFs led to a major retracement of the gains witnessed by key cryptocurrency assets in March, as reported by CCData.</span></p>
    <p><span data-preserver-spaces="true">Bitcoin's price also fell by nearly 15% last month, slipping beneath the $60,000 mark and ending its seven-month bullish progression that peaked with a </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">record high</span></a><span data-preserver-spaces="true"> over $73,000 in March.</span></p>
    <p><span data-preserver-spaces="true">The momentum until then was fueled chiefly by speculation related to the prior year's regulatory endorsements for spot ETFs and the </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">bitcoin halving event</span></a><span data-preserver-spaces="true">.</span></p>
    <p><span data-preserver-spaces="true">Recently, the crypto custody company </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">Bakkt</span></a><span data-preserver-spaces="true"> observed that SEC's </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">sanction of bitcoin ETFs</span></a><span data-preserver-spaces="true"> will likely encourage more institutional investors to participate in cryptocurrency trading.</span></p>
    <p><span data-preserver-spaces="true">Bakkt disclosed that its initial quarterly crypto trading volume surged by 324% due to notably active client transactions, as mentioned during their quarterly earnings discussion, according to the company's presentation.</span></p>
    <p><span data-preserver-spaces="true">Bakkt's CEO, </span><a target="_blank" class="editor-rtfLink" href="" target="_blank" rel="noopener"><span data-preserver-spaces="true">Andy Main</span></a><span data-preserver-spaces="true">, emphasized the initial positive signs in the market during the earnings call, noting the improved overall demand, heightened industry activity, higher cryptocurrency valuations, and increased retail trading volume.</span></p>
    <p><span data-preserver-spaces="true">Main pointed out that institutional investors, especially those offering bitcoin ETFs, are discovering that the prevalent retail-focused central limit order book trading structures are inadequate for their large-scale trading requirements.</span></p>
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                <span class="smaller fw-bold text-uppercase">See More In:</span><span class="smaller muted text-uppercase" itemprop="keywords"><a target="_blank" href="" rel="tag">Bitcoin</a>, <a target="_blank" href="" rel="tag">bitcoin ETFs</a>, <a target="_blank" href="" rel="tag">bitcoin halving</a>, <a target="_blank" href="" rel="tag">CCData</a>, <a target="_blank" href="" rel="tag">crypto</a>, <a target="_blank" href="" rel="tag">crypto trading</a>, <a target="_blank" href="" rel="tag">cryptocurrency</a>, <a target="_blank" href="" rel="tag">cryptocurrency trading</a>, <a target="_blank" href="" rel="tag">News</a>, <a target="_blank" href="" rel="tag">PYMNTS News</a>, <a target="_blank" href="" rel="tag">spot trading</a>, <a target="_blank" href="" rel="tag">What's Hot</a></span>

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