Crypto ‘winter’ slows volumes on some of the biggest exchanges

FTX.US, the US affiliate of the eponymous trading juggernaut, has seen low trading volume “across the board” in the past week, US President Brett Harrison said in an interview. “To me it looks like we are in a period of a normally downtrend followed by only decreased volume and sluggish trading activity.”

Following a drop in prices, “typically you’ll see very quick volume from people trying to sell during a panic, but then a longer period of decreased volume as people walk away from the market after volatility,” Harrison said. said. There should be “more confidence” from retail investors for crypto trading volume to return, he said.

Coinbase Global, Inc., the largest US crypto exchange, has also seen a drop in bitcoin spot daily volume over the past week, during which bitcoin fell from nearly $47,000 to $40,634. Coinbase shares closed at $232, down from a November high of $357.

Trading fees make up the majority of Coinbase’s revenue. Shares of Coinbase fell after lower-than-expected third-quarter revenue in November due to lower coin prices and trading volume.

“A price drop can reduce trading volume when it reaches the point of discouraging traders to engage. There is a possibility that the digital asset price may be flat,” said Owen Lau, an analyst at Oppenheimer & Co. Will go as if after the price drop in the crypto winter.”

While it is possible that the first quarter could be another “mini crypto winter,” there appears to be an upward trend in the form of digital asset adoption, Lau said. Prices can also drop so much that they seem cheap and tempt buyers to come back.

Mike Novogratz, CEO and founder of Galaxy Digital Holdings, told CNBC yesterday that he was waiting a bit longer to buy the cryptocurrency. Today, as Bitcoin is hovering at $41,990, he tweeted that “we have entered a buying zone.”

This story has been published without modification in text from a wire agency feed. Only the title has been changed.