to leave a comment.
▲ Bitcoin Crash ©CoinReaders
Market tension is escalating as the spot trading volume of Bitcoin (BTC), the leading cryptocurrency, has plummeted to its lowest in over two years. With trading activity sharply declining and market depth shallowing, coupled with detected selling pressure from U.S. institutional investors, warnings are emerging that prices could fluctuate significantly even with small capital movements.
According to the cryptocurrency specialized media Bitcoinist on May 1 (local time), on-chain data analysis platform Glassnode analyzed that Bitcoin spot trading volume has fallen to a multi-year low. Spot trading volume refers to the total dollar value of cryptocurrencies actually traded on centralized exchanges, and a decline in this figure suggests that investors are gradually exiting the market and withdrawing their interest.
According to Glassnode data, Bitcoin trading volume briefly surged immediately after the price crash in early February, but that momentum did not last long and fell back to low levels. In particular, despite Bitcoin's price recovery in April, the downward trend in trading volume did not stop, recently hitting its lowest level since October 2023. Analysis agencies point out that such a low trading volume environment is accompanied by a decrease in market depth, making it extremely sensitive to changes in capital flows.
In addition to the sharp drop in trading volume, the Coinbase Premium Gap indicator is also showing an unusual trend. Maartunn, a CryptoQuant community analyst, stated that this indicator, which tracks the price difference of Bitcoin between Coinbase's USD market and Binance's Tether market, recently plunged to minus 30 dollars.
The fact that Bitcoin is traded cheaper on Coinbase than on Binance signifies that the selling pressure from users on that platform is relatively much stronger. Analysts diagnose that, coupled with the recent pullback in Bitcoin prices, it is highly likely that U.S. institutional investors, who are Coinbase's core customer base, are actively leading the sell-off.
Amid growing market uncertainty due to a combination of investor indifference and selling pressure from large institutions, Bitcoin's price is currently trading around $76,400, maintaining a 1.5% decline over the past week.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.