Large crypto exchanges have reported that trading volume on a daily basis is dropping sharply on their platforms in the wake of price hikes that are not a good sign.
Retail investors are taking note of the market’s current fears and are reducing the amount of trading. Since the prices of crypto continue to drop investors are securing their cryptos and staying away from trading.
FTX.US The United States subsidiary of cryptocurrency exchange giant FTX has reported the daily volume of trading has decreased for all digital assets traded through the platform.
Coinbase America’s most popular exchange also announced that they’ve seen a dip in daily trading volume of Bitcoin. The week ended with the digital currency lose nearly $7,000. The shares of the company suffered a blow as it appears in the end, falling to $232 a share from 357 shares in the month of November.
The volume of trading is a crucial technical indicator for traders. Most investors think that a reduction in volume and price could be a sign of a price correction.
Bitcoin is creating lows since it has touched the all time high of $69K back in November 2021. The market is currently not look good bulls entry but a long time consolidation could help the price bounce back.
Bob is a Digital Entrepreneur and keen follower of the Crypto and Blockchain world. He enjoys exploring the latest technology and news related to Fintech world. He is a go-to person with a positive attitude towards life.