Trading Volumes on Crypto Exchanges Fell 40% Since Early December


According to data from Arcane Research, trading volumes of crypto exchanges have fallen to 40%. Are retail traders on the spot exchanges exhausted?

December 16, 2020 | AtoZ Markets – Over the past few weeks, the turnover of crypto exchanges has decreased by 40%, analysts at Arcane Research shared their observations.

Crypto exchanges see big drop in volumes

The chart below shows rapid growth in the trading volumes on exchanges in BTC/USD pairs during October-November and a subsequent sharp drop in the indicator.

Trading Volumes on Crypto Exchanges Fell 40% Since Early December

Dynamics of trading volumes on exchanges with more or less real trading volume. Data: Arcane Research, Messari, Skew.

“Are retail traders on the spot exchanges exhausted, or did they just take a break before the upward movement of bitcoin?” The analysts asked.

Over several weeks, the seven-day Bitcoin price volatility indicator has also significantly decreased – from 5% to “usual” values ​​in the range of 2-3%.

Trading Volumes on Crypto Exchanges Fell 40% Since Early December

Data: Arcane Research.

In early December, the correlation of Bitcoin with gold and other assets of the traditional market dropped significantly.

Data: Arcane Research, Digital Asset Data.

“2020 was characterized by high correlations between bitcoin, the stock market and other asset classes. However, over the past few months, the correlation of digital gold with the S&P 500 and gold has dropped significantly, ”the experts said.

Currently, the statistical relationship between Bitcoin and the “barometer of the American economy” is the lowest since the March collapse.

Recall that in the last decade of November, the spot volume of bitcoin trading has renewed its annual maximum.

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