Crypto Trading Volume Dives 70% Amid Market Caution
Cryptocurrency trading volume has plummeted to $15 billion, a 70% drop from its January peak of $50 billion. This decline marks the lowest daily Spot trading volume of the year so far.
The global cryptocurrency market capitalization saw a slight increase, rising by 1.23% to $2.18 trillion over the previous day. However, this growth is not reflected in the trading activity.
Experts suggest that investors are waiting for a catalyst, such as the approval of the CLARITY Act or a shift in monetary policy, before investing new money. This caution is causing a decline in liquidity, making price movements more susceptible to abrupt reversals.
The concentration of trading activity on six major exchanges has also raised concerns. Over 60% of Spot trading volume is concentrated on these platforms, leading to thinner order books and higher trading costs for smaller exchanges.