As cryptocurrencies are almost all in a bearish phase, the exchanges are increasingly concerned about the development of the situation. Indeed, they noted that many investors avoid investing money. They fear losing some, which could have consequences for the future of the cryptocurrency market, the horizons of which are darkening a bit.
FTX has noticed a drop in trading volumes
Brett Harrison, chairman of the FTX US exchange, said in an interview that his company has seen declining trading volumes.In all areasDuring the past week. “To me, it looks like we are in the period of just declining volumes and moderate trading activity following the overall declines.“
How does he explain this situation? He said during the interview that “usually you will see a lot of rapid volume from people trying to sell during a panic but then a longer period of reduced volume as people pull out of the market after volatility“. In order for trading volumes to return to their maximum level, retail investors must have “more confidence», He slipped.
Coinbase notices drop in trading volume
The FTX cryptocurrency exchange isn’t the only one noticing a reduction in trade volumes. Coinbase, the largest US digital asset exchange, also noted that it has noticed a decrease in daily cash bitcoin (BTC) volumes over the past week. During this week the BTC was trading around $ 40,634. In this situation, as Coinbase shares hit $ 357 in November, they fell to $ 232.
“Falling prices could cause trading volume to drop when it gets to the point of discouraging traders. It is possible that the price of digital assets will remain unchanged, for example entering a crypto winter after a drop in prices“Said Owen Lau, analyst at Oppenheimer & Co.
The downtrend in cryptocurrencies is holding many investors back from engaging in digital assets. For example, Mike Novogratz, CEO and founder of Galaxy Digital Holdings, told CNBC yesterday that he is still waiting a bit to buy cryptocurrency. However, today when BTC traded at around $ 41,990, he wrote on Twitter that “we entered the shopping area“.
Cryptocurrencies are plunged into a downtrend that is leading investors to distrust. Even the exchanges are seeing a marked decrease in trading volumes. This situation may continue for a little while before normalcy is restored.
Source: The Times of India
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