Budrigantrade com otzyvy-crypto market continues to wobble
Budrigantrade com otzyvy-crypto market continues to wobble
2023.01.07 11:48
Budrigantrade com otzyvy-crypto market continues to wobble
Budrigantrade.com – In addition to everything else, the crypto market faces an additional issue: Trading is in a downward spiral.
According to data compiled by CryptoCompare, trading volume on centralized exchanges like Coinbase, Kraken, and Binance decreased by more than 46% in 2022. Spot trading on Binance, which continues to hold the largest share of the market, decreased by 45 percent to $5.4 trillion. The report also stated that trading volumes for Bitcoin, the most traded digital asset, decreased 31% year-over-year.
Arcane Research’s “Liquid Tradeable BTC” proxy has fallen to June 2020 lows, and exchange balances have dropped to 12% as a result of an increase in self-custody, according to a report written by Bendik Schei and Vetle Lunde. They claim that because there are fewer coins available for trading, this has direct effects on Bitcoin liquidity.
According to FRNT Financial’s head of data and analytics, Strahinja Savic, “We are seeing some pretty spectacular declines in spot activity.”
Bitcoin remained in the narrow range of $17,000 to $18,000 that it has largely remained in since the end of November during the week before the holidays.
The Terra stablecoin ecosystem and the FTX empire were among the important projects that saw significant losses last year, which contributed to a decline in cryptocurrency prices. Bitcoin experienced its second-worst annual performance in its 14-year history, a drop of 64 percent.
Many retail investors who had flocked to the market during the early pandemic, when lockdowns were still in place, have been put off by the fall in token prices. Additionally, the scandals have alarmed a lot of institutional investors, who are concerned that the business will not recover quickly.
According to Matt Maley, chief market strategist at Miller Tabak + Co., “this is especially true in a bear market,” the lack of trading volumes is another indication that institutions have abandoned the asset class for the time being. “It could take a while before they once again regain confidence in the market,” he stated. When they see large losses in a risky asset class during a general bear market for risk assets, their customers are much less forgiving.
According to Jared Gross, head of institutional portfolio strategy at JPMorgan Asset Management, “the money managers who avoided the many ups and downs of crypto may be feeling relieved for having done so.” On a recent episode of the podcast “What Goes Up,” he stated, “Crypto is effectively nonexistent for the majority of large institutional investors as an asset class.”
Following the demise of the FTX empire, the crypto industry is still in a shaky state, and market observers are wary of additional negative developments involving other major players. Another indication of how much the industry is being shaken by recent events is the fact that Broker Genesis recently laid off roughly 30% of its employees.
On Friday, digital asset entrepreneur Justin Sun transferred stablecoins worth approximately $100 million to his cryptocurrency exchange Huobi Global, which has experienced a flurry of withdrawals. The transactions occurred at a time when Huobi, based in Singapore, was under more pressure.
Coinglass data show that over a 24-hour period, about $85 million worth of cryptocurrencies were sold off. As the crypto market slump enters its second year, the exchange announced on Friday that it will maintain a “very lean team” and plan to fire approximately 20% of its employees.
According to Noelle Acheson, author of the newsletter “Crypto Is Macro Now,” institutional interest is more relevant for trading activity, particularly in the early stages of the next upswing. She stated, “They typically account for the majority of trading and have distinct risk profiles.” Retail typically arrives with size closer to the top of the cycle.
Acheson went on to say that retail investors who are “brave and high-conviction” are currently entering the market, but that “we are a ways off from seeing a ‘wave.'”
