Escalating geopolitical tensions and slowing inflows to U.S.-listed spot ETFs weighed on the digital asset market, with crypto trading volumes easing in April, marking the first decline in seven months.
Cumulative trading volume in spot and derivatives markets fell 43.8% to $6.58 trillion, from a record high of $9.12 trillion in March, according to a report from London-based digital asset data provider CCData. took a significant step back.
Derivatives once again fell out of favor with investors as futures and options market activity fell 47.6% to $4.57 trillion. Meanwhile, spot market volume suffered a relatively notable decline, down 32.6% to $2.1 trillion.
“The decline comes on the heels of unexpected macroeconomic data, an escalation of the geopolitical crisis in the Middle East, and negative net flows from the U.S. Spot Bitcoin ETF, which boosted the gains the leading crypto asset made in March. ,” CCData said in a shared report. coin desk.
Bitcoin (BTC), the top cryptocurrency by market capitalization, fell nearly 15% last month to below $60,000, ending a seven-month winning trend. The selloff came as tensions in the Middle East flared up, the Fed's chances of rapid interest rate cuts this year became less likely, and an overheated bull market marked by strength in the dollar index led to widespread risk aversion.
The CoinDesk 20 Index, the most liquid digital asset index, traded nearly 20%, and the market capitalization of cryptocurrencies fell 16.8% to $2.177 trillion.
Binance remained the largest cryptocurrency exchange by trading volume, but its combined spot and derivatives market share fell to 41.5%. The exchange's spot market trading volume fell 39.2% in April to $679 billion, marking the first decline since September 2023.
“Binance’s market share decline coincided with the news that Binance founder and former CEO Changpeng Chao was sentenced to four months in prison for violating US money laundering laws,” CCData noted. .
Binance CEO Changpeng “CZ” Zhao resigned in November after pleading guilty to U.S. criminal charges and was replaced by Richard Teng. Since then, Binance's spot market share has increased from 30.8% to 33.8%, CCData said.
