Cryptocurrency spot trading cooled last month for the first time in seven months.
It was a trend driven by a decreasing likelihood of interest rate cuts and slower inflows into US-listed bitcoin spot exchange-traded funds (ETFs), Seeking Alpha reported Saturday (May 18), citing figures from the researcher. CC data.
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, its first drop in three months.
โThis decline followed unexpected macroeconomic data, an escalation of the geopolitical crisis in the Middle East, and negative net flows from US spot Bitcoin ETFs, leading major cryptoassets to recoup the gains they made in March," CCData said.
Bitcoin also fell nearly 15% last month, falling below $60,000 and breaking a seven-month hot streak that included a record of more than $73,000 in March.
As the report notes, this run was primarily driven by speculation surrounding regulatory approval last year of spot ETFs and the bitcoin halving event.
Last week, the cryptocurrency custody company Bakkt said that the Securities and Exchange Commission (SEC) bitcoin ETF approval will lead to institutional investors playing a larger role in the cryptocurrency trading market.
The company's earnings showed that in the first three months of the year, cryptocurrency trading volume rose 324% compared to the prior quarter, โdriven by exceptionally strong customer business activity,โ according to the filing.
โAs evidenced by our trading volumes in the first quarter, we have started to see positive green shoots in the market and the overall demand environment is improving, with more industry activity, higher coin prices. and higher overall retail trade volume" main andysaid the president and CEO of Bakkt, during the company's quarterly results conference call.
Institutional investors in this market are looking for a purpose-built cryptocurrency trading platform that aligns with their needs and priorities, rather than the existing trading market that was primarily created for retail investors, according to Bakkt's presentation.
โThe cryptocurrency trading industry has been primarily created for everyday retail investors using a central limit order book trading structure,โ Main said. โMeanwhile, institutional investors offering bitcoin ETFs are increasingly finding that the retail central limit order book structure does not meet their large-scale needs.โ
