Trading volume on the largest crypto exchanges is hitting new lows as the Bitcoin price drops to $31,400, according to Blockchain.com currency statistics. A major volume outflow is happening on all of the major exchanges, including Coinbase, Kraken, Binance and Bitstamp.
The biggest exchange trade volume for BTC/USD pairs hit $119 million and has reached a six-month low. Various exchanges are losing from 15 to 30 percent of their volume on all trading pairs.
New volume lows correlate with a significant drop in the network hashrate, which was caused by the actions of the Chinese government against cryptocurrency miners. While we see a slight recovery in terms of mining power within all of the major networks, market capitalization still remains in a strong downtrend without any signals for recovery. Current market capitalization remains at $590 billion.
While there are many on-chain factors that have an impact on trading volume on the major exchanges, the most noticeable correlation for exchange volume is the Bitcoin price. Speculative interest acts as the main driver for the trading volume of the cryptocurrency market.