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Spot cryptocurrency trading slows in April
Spot cryptocurrency trading cooled last month for the first time in seven months.
This was a trend driven by a decreasing likelihood of interest rate cuts and slower inflows into US-listed bitcoin spot exchange traded funds (ETFs). reported Saturday (May 18), citing the researcher’s numbers CCData.
According to this data, the volume of the spot market on exchanges such as Coinbase, Binance AND Kraken fell 32.6% to $2.01 trillion in April, while monthly derivatives trading volume fell 24.1% to $4.57 trillion, the first decline in three months.
“This decline followed unexpected macroeconomic data, an escalation of the geopolitical crisis in the Middle East, and negative net flows from spot Bitcoin ETFs in the US, which led major crypto assets to retrace the gains made in March,” he said. stated CCData.
Bitcoin also tumbled nearly 15% last month, falling below $60,000 and breaking a streak of seven hot months that included a record by more than $73,000 in March.
As the report notes, this run was driven primarily by speculation surrounding last year’s regulatory approval of spot ETFs and bitcoin halving event.
Last week, cryptocurrency custodian company Bakkt stated that the Securities and Exchange Commission (SEC) approval of bitcoin ETFs will lead institutional investors to play a larger role in the cryptocurrency trading market.
The company’s earnings showed that cryptocurrency trading volume increased in the first three months of the year rose by 324% compared to the previous quarter, “driven by exceptionally strong client trading activity,” the presentation said.
“As evidenced by our trading volumes in the first quarter, we have started to see positive signs in the market and an improvement in the overall demand environment, with increased industry activity, higher coin prices and overall higher retail trading volume high.” Andy Mainpresident and CEO of Bakkt, said during the company’s quarterly earnings call.
Institutional investors in this market are looking for a purpose-built cryptocurrency trading platform that will align with their needs and priorities, rather than the existing trading market that was built primarily for retail investors, Bakkt presentation says .
“The cryptocurrency trading industry was created primarily for everyday retail investors using a central limit order book trading structure,” Main said. “Meanwhile, institutional investors offering bitcoin ETFs are increasingly finding that the core retail limit order structure does not meet their needs at scale.”
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