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Binance, Coinbase and Other Major Exchanges Saw Their Bitcoin Trading Volumes Plunge This January

  • Alex Morris
    📊‍ Infographics

    While the cryptocurrency market remains in limbo, Bitcoin trading volumes took a nosedive this January


Binance, Coinbase and Other Major Exchanges Saw Their Bitcoin Trading Volumes Plunge This January
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The longest Bitcoin bear market in history expectedly took its toll on the world’s biggest exchanges. In its latest issue, cryptocurrency research startup Diar published a new study that displays a sizeable drop in Bitcoin trading volumes on Binance, Coinbase, Gemini, and OKEx.

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Binance is not immune to market bears

Binance, the biggest exchange by trading volume, saw its USD-based market dropping by 40 percent in January. Meanwhile, Coinbase barely managed to surpass the $1 bln mark (a 10-fold decrease compared to January 2018).

Gemini also had an underwhelming start this year — its volumes plunged below $500 mln for the first time since September. Meanwhile, OKEx broke its three-month long growth streak, but remains the only exchange from the pack whose trading volumes actually increased compared to January 2018 (from $2 bln to almost $4 bln).

Stability is a bad thing

While Bitcoin is becoming more attractive to institutional investors, its low volatility directly reflects in declining trading volumes, Diar suggests. Traders flock in droves to exchanges to profit off constant price swings, but that’s not the case when the market remains in limbo.


Cover image via u.today
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Institutional Interest in Bitcoin Continues to Grow: Report

  • Alex Morris
    📊‍ Infographics

    Institutional Bitcoin trading volumes have been on the rise since the beginning of April, but there is only one winner in this game
     


Institutional Interest in Bitcoin Continues to Grow: Report
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According to a new study published by Blockchain research firm Diar, institutional Bitcoin trading volumes are growing for the fourth consecutive month. The fact that the number of CME futures contracts skyrocketed since the beginning of April is the icing on the cake.

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CME’s dominance

 As reported by U.Today, CME Bitcoin futures saw their daily trading volume increase by a whopping 950 percent with 22,542 contracts on Apr. 4. In fact, the sudden rise in Bitcoin price was linked to the expiration of CME futures.  

So far, that level of interest remained steady with 11,873 contracts traded on Apr. 11.


Institutional Interest in Bitcoin Continues to Grow: Report

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The only winner

With CBOE pulling the plug on Bitcoin futures due to its inability to compete with its Chicago-based rival CME, there is a clear winner in this race. While Diar calls CBOE ‘the biggest loser’, Grayscale's Bitcoin Investment Trust (GBTC) is not exactly on the winning side, either. It now accounts for 24 percent of the market, lagging behind CME (a far cry from its 50 percent market share back in January 2018).

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New heights

The dominance of institutional products has been steadily rising since January. As of April, institutional money is responsible for 19 percent of the total Bitcoin trading volume (almost 8 percent more than during the market peak in January 2018). However, it has yet to match its 24 percent market share that was recorded in July.

Cover image via u.today
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