Reserve

Bitcoin

Impact

Spot

<img decoding="async" width="1200" height="800" src="https://coingape.com/wp-content/uploads/2023/12/bitcoin-trading-volume-1-e1703804146984.jpg" class="attachment-full size-full wp-post-image" alt="Bloomberg Reveals What Caused Bitcoin, ETH, SOL, XRP, SHIB Prices To Crash" style="float:right; margin:0 0 10px 10px;">
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 <a href="https://coingape.com/glossary/altcoins" target="_blank" rel="noopener">altcoins</a> prices to dip further. Bitcoin price dropped to $60,400 as Fed officials’ comments and new data on inflation forecasts were against rate cuts. 
<h2 id="trading-volumes-drop-amid-macroeconomic-concerns">Trading Volumes Drop Amid Macroeconomic Concerns</h2> 
Spot trading volume on major centralized exchanges such as Coinbase, Binance, KuCoin tumbled 32.6% to $2 trillion in April, as per data by <a rel="nofollow" href="https://www.bloomberg.com/news/articles/2024-05-10/trading-on-centralized-crypto-exchanges-fell-for-first-time-in-seven-months" target="_blank">CCData</a>. 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 <a href="https://coingape.com/trending/how-is-bitcoin-halving-adjusting-the-market/" target="_blank" rel="noopener">Bitcoin halving</a> also failed to bring a sudden increase in BTC price or crypto market recovery, and the price fell below $60,000. 
<img decoding="async" class="aligncenter" src="https://www.bnnbloomberg.ca/polopoly_fs/1.2071464.1715344893!/fileimage/httpImage/image.png_gen/derivatives/landscape_620/image.png"> 
“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 <a href="https://coingape.com/cpi-jpmorgan-other-banks-estimates-higher-inflation-bitcoin-to-fall-below-60000/" target="_blank" rel="noopener">CPI</a> 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. 
<h2 id="binance-and-cme-group-revealed-low-trading-volumes">Binance and CME Group Revealed Low Trading Volumes</h2> 
The world’s largest crypto exchange <a href="https://coingape.com/tag/binance" target="_blank" rel="noopener">Binance</a> 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. 
Also Read: <a title="Here’s Why Bitcoin Price Is Falling Sharply" href="https://coingape.com/heres-why-bitcoin-price-is-falling-sharply/" target="_blank" rel="bookmark noopener">Here’s Why Bitcoin Price Is Falling Sharply</a> 
<h2 id="btc-price-awaits-another-breakout">BTC Price Awaits Another Breakout</h2> 
CoinGape accurately predicted the recent <a href="https://coingape.com/bitcoin-price-breakout-crypto-market-recovery-confirmed/" target="_blank" rel="noopener">crypto market recovery</a> as Bitcoin chart patterns confirmed a breakout above the trendline. <a href="https://coingape.com/price/bitcoin" target="_blank" rel="noopener">BTC price</a> 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, <a href="https://coingape.com/tag/xrp" target="_blank" rel="noopener">XRP</a>, 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. 
<img decoding="async" class="aligncenter wp-image-196295" src="https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35.png" alt="BTC USD" width="794" height="301" srcset="https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35.png 1694w, https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35-300x114.png 300w, https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35-1224x464.png 1224w, https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35-768x291.png 768w, https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35-1536x582.png 1536w, https://coingape.com/wp-content/uploads/2024/05/BTCUSD_2024-05-10_19-34-35-150x57.png 150w" sizes="(max-width: 794px) 100vw, 794px"> 
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. 
Also Read: 
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The post <a href="https://coingape.com/bloomberg-reveals-what-caused-bitcoin-eth-sol-xrp-shib-prices-to-crash/">Bloomberg Reveals Reasons Behind Bitcoin, ETH, SOL, XRP, SHIB Prices Crash</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Bloomberg Reveals Reasons Behind Bitcoin, ETH, SOL, XRP, SHIB Prices Crash

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