Bloomberg Reveals What Caused Bitcoin, ETH, SOL, XRP, SHIB Prices To Crash

The crypto trading volumes on major crypto exchanges tumbled massively in April. The trading volumes fell for the first time in seven months after Bitcoin price plummeted from an all-time high of $73,800, reported Bloomberg on Friday.

The situation continues in May as spot and derivatives trading volumes wane, causing Bitcoin and altcoins prices to dip further.

Trading Volumes Drop Amid Macroeconomic Concerns

Spot trading volume on major centralized exchanges such as Coinbase, Binance, KuCoin tumbled 32.6% to $2 trillion in April, as per data by CCData. In addition, derivatives trading volumes also dropped 26.1% to $4.57 trillion, for the first time in seven months.

Trading volumes skyrocketed earlier this year in response to the approval and listing of US spot Bitcoin exchange-traded funds (ETF) in January. The April 19 Bitcoin halving also failed to bring a sudden increase in BTC price or crypto market recovery, and the price fell below $60,000.

“Consistent with patterns observed in the last two cycles, trading activity on centralized exchanges typically slows in the two months following the Bitcoin halving event,” said Jacob Joseph, a research analyst at CCData.

Moreover, the sticky inflation and stagflation concerns faced by the U.S. Federal Reserve weakened market sentiment. Also, hotter CPI inflation data, escalation in the Middle East tensions, and potential bank run concerns pushed some uncertainty and fear into the market. The sentiment reversal caused negative net flows from the spot Bitcoin ETFs.

Binance and CME Group Revealed Low Trading Volumes

The world’s largest crypto exchange Binance saw its spot market share drop by 4% to 33.8% for the first time since September 2023 as trading volumes dipped significantly.

Moreover, CME Group, the largest Bitcoin derivatives exchange, saw crypto trading volume decline nearly 20% to $124 billion.

“Despite this, while trading activity on centralized exchanges has slowed down compared to its peak in March, it remains at a heightened level compared to the volumes recorded in the other months,” Joseph said.

BTC Price Awaits Another Breakout

CoinGape accurately predicted the recent crypto market recovery as Bitcoin chart patterns confirmed a breakout above the trendline. BTC price rebounded from $60,630 to $62,585 in a few hours on Thursday after a 3-day descending trendline was broken in a lower timeframe. The price hit a high of $63,446 today, with other altcoins such as ETH, SOL, XRP, DOGE, and SHIB also rebounding.

However, the concerns of pullback still remain due to options expiry and economic data coming this week and next week.

A breakout above the descending channel since mid-March will be bullish for BTC price to hit $100,000. This will be the confirmation of the post-halving Bitcoin price rally, triggering a broader crypto market rally.

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.