The trading volume of the first cryptocurrency on centralized platforms in August amounted to the minimum since October 2020, $423 billion. Such calculations were made by Bitfinex analysts in a report.
“Turnover has been consistently declining across the board for several months,” the document says.
According to experts, this signals “a decline in confidence in Bitcoin and the broader crypto-asset sector.”
An environment of low liquidity makes the digital asset market susceptible to significant price fluctuations even with modest trading volumes, experts emphasized.
The driving force was the derivatives market, the turnover of which at the moment turned out to be 20 times higher than spot values on the CEX.
Analysts noted increased pessimism among investors and the need for a new catalyst to restore positive conditions.
They noted that news surrounding the SEC's position on ETFs began to have a "less pronounced impact on market prices," while macroeconomic data from the United States began to cause a more sensitive reaction.
