Bitcoin spot trading volume on Binance drops 57%

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The Binance cryptocurrency exchange topped the anti-rating for the decline in Bitcoin spot trading – the figure has fallen by 57% since September. This is evidenced by the K33 report.

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7-day moving average of Bitcoin spot trading volume on Binance. Data: K33.

The total value for all platforms decreased by 48%. At the same time, spot Bitcoin volumes fell by another 8% compared to the August five-year low.

Analysts noted that Binance is at the forefront of the fall, when other platforms show relatively stable performance.

According to experts, Binance’s lag is due to protracted litigation with the SEC and CFTC. However, its closest competitor Coinbase, which is also suing the regulator, recorded a 9% increase in spot trading in digital gold in September.

Despite the decline in Bitcoin performance, K33 noted a slight rally in Ethereum and Binance Coin. Over the past seven days, both coins are up 6%, trading above three-week highs.

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Data: K33.

According to the report, some indicators point to bullish sentiment among derivatives traders on the Chicago Mercantile Exchange. Last week there was an increase in open interest in Bitcoin instruments from active market participants by 19%. However, the figure for ETH fell by 17%.

In addition, the researchers observed a significant divergence in Bitcoin’s correlation with the traditional S&P 500 and DXY indices.

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BTC/S&P 500 correlation. Data: K33.

According to analysts, the direction of the crypto market in 2023 largely depends on decisions on Bitcoin ETFs and regulatory sentiment.

Recall that according to CoinMarketCap, in the second quarter of 2023, the total volume of spot trading on the 20 leading Bitcoin exchanges decreased by 36% – from $2.6 trillion to $1.66 trillion.

In September, analyst Markus Thielen of Matrixport predicted an increase in Bitcoin’s dominance as many well-known altcoins face increasing risks of falling prices.

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