Cryptocurrency exchange trading volume falls for the first time in seven months

Trading volumes on major cryptocurrency exchanges fell in April for the first time in seven months, while market leader Bitcoin retreated from an all-time high.

Spot trading volumes on so-called centralized exchanges such as Coinbase Global, Binance and Kraken plunged 32.6% to $2 trillion last month, according to research firm CCData. Derivatives volumes also fell for the first time in seven months, dropping 26.1% to $4.57 trillion.

Global cryptocurrency spot trading volume fell in April

Source: CCData

While trading surged earlier this year as U.S. exchange-traded funds investing in bitcoin were launched, volumes have slowed as financial conditions tighten in the U.S. and the Federal Reserve faces challenges overcoming sticky inflation. The April 19 bitcoin halving — when the supply of new coins minted on the network is cut in half — was the catalyst for previous market excitement.

“Consistent with the patterns observed in the past two cycles, trading activity on centralized exchanges typically slows down within two months after the Bitcoin halving event, ” said Jacob Joseph, research analyst at CCData. “In addition, higher-than-expected CPI inflation data and escalating geopolitical tensions in the Middle East have brought a certain degree of uncertainty and panic to the market. This coincides with the negative net flows of spot Bitcoin ETFs, pushing the price of the major crypto asset to a range low.”

As trading volumes fell overall, Binance, the world's largest cryptocurrency exchange, saw its spot market share fall for the first time since September 2023. Data from CCData showed that the exchange's spot market share fell by nearly 4% to 33.8%, the lowest level since January this year.

CME Group also saw its first drop in cryptocurrency trading in seven months. Its derivatives volumes fell nearly 20% to $124 billion in April, according to CCData.

“Nevertheless, while trading activity on centralized exchanges has slowed from its peak in March, it is still high compared to volumes recorded in other months,” Joseph said.