Bitcoin’s Trading Volume Plummets 77% Amidst Market Uncertainty in Q1 2023

According to COINOTAG News on April 10th, a recent report by CoinDesk highlights a dramatic decline in Bitcoin spot trading on centralized exchanges (CEX). The total trading volume plummeted from an impressive $440 billion on February 3rd to merely $100 billion by the end of Q1, marking a staggering decrease of approximately 77%. Concurrently, the overall trading volume for token spot trading on cryptocurrency platforms fell from $1.22 trillion at its peak to just $230 billion, reflecting a decline of over 80%. This sharp drop in trading activity signals a potential erosion of trader and investor confidence amidst heightened uncertainty. Observed price reductions further imply that both Bitcoin and other cryptocurrencies are depreciating, potentially inciting panic among market participants. Such conditions may establish a perilous feedback loop, resulting in diminished trading volume and exacerbated price declines.