Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain
  • NFT
  • Metaverse
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Guild of Guardians leads with a huge volume of $ 796.62k

2025-05-20

Graph signal running to new ATH

2025-05-19

Pi Network announces vacancies in the midst of price fall, pump and dump rumors

2025-05-19
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
Facebook X (Twitter) Instagram
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Regulation
    • Market Cap
    • Web 3
    • Scam
  • Blockchain

    Weaver Labs stimulates AI-led decentralized connectivity, joins Imagen Network

    2025-05-19

    Cdari works together with Laika Ai to strengthen blockchain -intelligence about chains

    2025-05-19

    Vitaminai and Blocx partner to stimulate security and productivity by bridging Web2 and Web3

    2025-05-19

    Sentismai integrates Kyberswap for seamless EVM -Kettingwaps

    2025-05-19

    Alchemie acquires Solana developer Dexterlab for unknown sum

    2025-05-19
  • NFT

    Guild of Guardians leads with a huge volume of $ 796.62k

    2025-05-20

    Solana Meme Coin Ponke Set to release assembly objects, clothing via Jcorp Spinout

    2025-05-19

    The most popular collections of the moment on blockchain

    2025-05-18

    Raoul Pal sees NFT market exploding when Ethereum Bull Cycle is approaching

    2025-05-17

    Ethereum is at the top of the charts in weekly NFT sales with $ 44.7 million in sales volume

    2025-05-16
  • Metaverse

    Shib: The Metaverse – Part of the expanding Shiba Inu ecosystem

    2025-01-03

    Experience to Earn: Everdome’s Metaverse Frontier

    2024-12-30

    Beyond Bots: Meta Motivo and the Dawn of Human Digital Life

    2024-12-13

    Exploring NetVRk: What’s Behind This AI-Powered Virtual Universe?

    2024-10-28

    Council of Europe emphasizes the impact of Metaverse on privacy and democracy

    2024-09-05
  • Analysis

    Graph signal running to new ATH

    2025-05-19

    BlackRock’s Buidl to Power Bouncebit’s new RWA Yield Strategy Platform

    2025-05-19

    Finish Bitcoin price inches in the direction of all time-can Momentum?

    2025-05-19

    XRP -Price confirms Bullish reversing settings with this demand zone

    2025-05-19

    Ethereum – price cannot break through – what does it stop?

    2025-05-19
  • Learn

    Types of Blockchain Layers Explained: Layer 0, Layer 1, Layer 2 and Layer 3

    2025-05-16

    Token vs. Coin: Key Differences You Must Know as a Beginner

    2025-05-15

    Inside Changelly: 10 years of steadfast support and compliance

    2025-05-15

    What Is Proof-of-Work (PoW)?

    2025-05-12

    What Is Proof-of-Authority (PoA)?

    2025-05-10
  • Blog
  • Contact
    • Tech7685@gmail.com
Free Cryptocurrency – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Bitcoin»Reasons behind the sharp decline in Bitcoin volumes in 2023
Bitcoin

Reasons behind the sharp decline in Bitcoin volumes in 2023

2023-09-04No Comments4 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email
  • Sharp fall in the DXY index impacted stablecoin share of Bitcoin volumes in 2023.
  • Binance was guilty of being a major contributor to the decline.

Bitcoin [BTC] in 2023 hasn’t been what it used to be. Volatility at record lows, weak exchange volumes, and a simmering disinterest among day traders has become the norm for the asset class, which not long ago built the fortunes of many in the 2020-21 bull market.


Read Bitcoin’s [BTC] Price Prediction 2023-24


James Butterfill, Head of Research at digital asset investment firm Coinshares, cited inputs from the organization’s trading team to emphasize how market makers and retail traders have been steadily exiting exchanges in the recent months. “Some are now operating on a 24-hour schedule for just five days a week, as opposed to daily,” Butterfill added.

Daily average volumes dip in 2023

A look at daily trading volumes in 2023 was enough to paint the contrast. On average, about $7 billion worth of transactions involving Bitcoin were settled on centralized exchanges this year, markedly lower than $13.8 billion and $11 billion witnessed in 2021 and 2022 respectively.

Notably, starting from Q2 2023, there has been a considerable decline in trading volumes, reminiscent of the pre-bull run period of 2019-20.

Source: Coinshares

Butterfill brought attention to some fascinating discoveries while explaining the reasons behind the fall in trading activity.

Depleting demand for USD-pegged stablecoins

As evident below, the initial phase of the 2021 bull run was powered by trades against altcoins and fiat currencies. However, progressing to late 2021, the appetite for U.S. Dollar-backed stablecoins suddenly increased. The trend continued throughout 2022 and Q1 2023.

Source: Coinshares

The growing demand for stablecoins, and by extension USD, coincided with the beginning of the U.S. Federal Reserve’s rate-hiking cycle. In March 2o22, the central bank approved its first interest rate increase in more than three years, as part of its attempts to fight surging inflation.

See also  Bitcoin drops to $38K? The argument for this price prediction is...

Interest rate hikes by the Fed applies significant upward pressure to the U.S. Dollar Index (DXY) as the policy results in increased demand for dollars from foreign investors.

Naturally a strengthening USD prompted investors across the world to liquidate their Bitcoin holdings in favor of stablecoins. Notice how DXY was strongly correlated to the market share of stablecoins in Bitcoin trading volumes around that period.

Source: Coinshares

However, inflation in the U.S. slowed down comparatively in 2023, raising hopes that the cycle of Fed’s aggressive supply hikes would eventually come to a halt. This resulted in a sharp fall in the DXY and consequently the high stablecoin volumes came tumbling down.

Binance-led decline

While a drop in stablecoin share of Bitcoin volumes could partially explain the low trading activity on exchanges in 2023, there were other glaring factors at play. Ironically, the world’s largest crypto exchange Binance was one of the major contributors to the decline.

Source: Coinshares

This decrease was primarily due to Binance ending its no-fee trading program in March earlier this year. As per an earlier report by Kaiko, zero-fee trade volume made up the bulk of the total volumes on Binance, nearly 66%, until mid-March 2023. Note that Binance succeeded in scooping out a significant share from rivals after the attractive scheme was introduced.

Add to this, the increasingly hawkish stance adopted by U.S. regulators on crypto participants. Binance has been on the radar of U.S. Securities and Exchange Commission (SEC) in 2023, with the latter initiating a lawsuit against the crypto behemoth in June.

See also  Strategy Bitcoin bet of $ 46 billion now supported by this large American institution

Fears of a replay of an FTX-like situation, where many were locked out of the exchange, led to a gradual withdrawal from Binance.

Additionally, the considerable decline in Binance USD [BUSD] volumes, again precipitated by regulatory crackdown, added to Binance’s woes in 2023.

Bitcoin has more addresses than…

While Bitcoin has been lackluster on trading platforms, there wasn’t any impact on its global adoption trends. According to a post by popular on-chain sleuth Ali Martinez dated 3 September, the total number of BTC addresses registered a new milestone. With a count of 48.5 million, Bitcoin had more wallets than the entire population of Spain.

Today, the number of #Bitcoin holders has exceeded the entire population of Spain 🇪🇸, boasting more than 48.5 million $BTC hodlers! pic.twitter.com/uWQVRQsLm6

— Ali (@ali_charts) September 3, 2023


Is your portfolio green? Check out the BTC Profit Calculator


It should be noted that there is no 1:1 mapping between a holder and wallet as multiple wallets can be linked to a single holder of BTC.

At the time of writing, BTC exchanged hands at $25,961.49, per data from CoinMarketCap.



Source link

Bitcoin decline Reasons Sharp Volumes
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin Macro Trend Oscillator shows when you can expect the price pin

2025-05-19

Bitcoin touches $ 2T market capitalization, surpasses Google and Meta – Is Apple next?

2025-05-19

Finish Bitcoin price inches in the direction of all time-can Momentum?

2025-05-19

Whales that are used heavily on Bitcoin Longs – this is why this can work out counterproductive!

2025-05-19
Add A Comment

Comments are closed.

Top Posts

Animoca Japan has teamed up with Weebox, a new brand for anime and manga collectibles

2023-07-06

1) What (just happened)? The Black Swan Crash, Explained.

2024-08-05

What’s next for Litecoin after a 6% drop

2023-06-06
Editors Picks

EU policy stimulates the dominance of the US dollar

2025-04-05

Bitcoin – price in Limbo – Before the next movement than $ 92k conceived

2025-03-07

Predict Bitcoin’s next move: is a short -term rally in sight?

2025-02-12

Crypto Exchange Gemini Settles With IRA Financial Trust Over $36,000,000 Hack In 2022: Report

2024-07-21
About
About

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Guild of Guardians leads with a huge volume of $ 796.62k

Graph signal running to new ATH

Pi Network announces vacancies in the midst of price fall, pump and dump rumors

Get Informed

Subscribe to Updates

Get the latest news and Update from Free.cc about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • BitcoinPlatform.com
© 2025 Free.cc - All rights reserved. Contact: info@free.cc

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$106,264.743.20%
  • ethereumEthereum(ETH)$2,570.038.25%
  • tetherTether USDt(USDT)$1.00-0.02%
  • rippleXRP(XRP)$2.392.31%
  • binancecoinBNB(BNB)$650.942.27%
  • solanaSolana(SOL)$170.034.24%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.2272894.44%
  • cardanoCardano(ADA)$0.743.22%
  • tronTRON(TRX)$0.2699063.31%
  • suiSui(SUI)$3.884.19%
  • chainlinkChainlink(LINK)$16.207.66%
  • avalanche-2Avalanche(AVAX)$22.524.22%
  • hyperliquidHyperliquid(HYPE)$26.664.88%
  • stellarStellar(XLM)$0.2863882.80%
  • shiba-inuShiba Inu(SHIB)$0.0000153.53%
  • hedera-hashgraphHedera(HBAR)$0.1962614.69%
  • unus-sed-leoUNUS SED LEO(LEO)$8.711.04%
  • bitcoin-cashBitcoin Cash(BCH)$395.422.69%
  • the-open-networkToncoin(TON)$3.051.13%
  • litecoinLitecoin(LTC)$97.762.67%
  • polkadotPolkadot(DOT)$4.663.94%
  • moneroMonero(XMR)$347.781.36%
  • bitget-tokenBitget Token(BGB)$5.202.32%
  • pepePepe(PEPE)$0.0000134.52%
  • daiDai(DAI)$1.000.00%
  • piPi(PI)$0.741.23%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • aaveAave(AAVE)$268.3325.38%
  • uniswapUniswap(UNI)$6.015.50%
  • bittensorBittensor(TAO)$415.924.10%
  • nearNEAR Protocol(NEAR)$2.845.57%
  • aptosAptos(APT)$5.227.27%
  • okbOKB(OKB)$52.460.54%
  • ondo-financeOndo(ONDO)$0.955.32%
  • kaspaKaspa(KAS)$0.1101563.01%
  • ethereum-classicEthereum Classic(ETC)$18.706.26%
  • internet-computerInternet Computer(ICP)$5.305.14%
  • gatechain-tokenGateToken(GT)$21.651.17%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.911.51%
  • crypto-com-chainCronos(CRO)$0.0971172.28%
  • mantleMantle(MNT)$0.741.06%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2351802.36%
  • vechainVeChain(VET)$0.0284484.39%
  • render-tokenRender(RENDER)$4.696.74%
  • ethenaEthena(ENA)$0.3855219.24%
  • usd1World Liberty Financial USD(USD1)$1.00-0.04%
  • algorandAlgorand(ALGO)$0.2252795.51%
  • arbitrumArbitrum(ARB)$0.3984367.80%
  • filecoinFilecoin(FIL)$2.884.94%
  • bitcoinBitcoin(BTC)$106,264.743.20%
  • ethereumEthereum(ETH)$2,570.038.25%
  • tetherTether USDt(USDT)$1.00-0.02%
  • rippleXRP(XRP)$2.392.31%
  • binancecoinBNB(BNB)$650.942.27%
  • solanaSolana(SOL)$170.034.24%
  • usd-coinUSDC(USDC)$1.000.00%
  • dogecoinDogecoin(DOGE)$0.2272894.44%
  • cardanoCardano(ADA)$0.743.22%
  • tronTRON(TRX)$0.2699063.31%
  • suiSui(SUI)$3.884.19%
  • chainlinkChainlink(LINK)$16.207.66%
  • avalanche-2Avalanche(AVAX)$22.524.22%
  • hyperliquidHyperliquid(HYPE)$26.664.88%
  • stellarStellar(XLM)$0.2863882.80%
  • shiba-inuShiba Inu(SHIB)$0.0000153.53%
  • hedera-hashgraphHedera(HBAR)$0.1962614.69%
  • unus-sed-leoUNUS SED LEO(LEO)$8.711.04%
  • bitcoin-cashBitcoin Cash(BCH)$395.422.69%
  • the-open-networkToncoin(TON)$3.051.13%
  • litecoinLitecoin(LTC)$97.762.67%
  • polkadotPolkadot(DOT)$4.663.94%
  • moneroMonero(XMR)$347.781.36%
  • bitget-tokenBitget Token(BGB)$5.202.32%
  • pepePepe(PEPE)$0.0000134.52%
  • daiDai(DAI)$1.000.00%
  • piPi(PI)$0.741.23%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • aaveAave(AAVE)$268.3325.38%
  • uniswapUniswap(UNI)$6.015.50%
  • bittensorBittensor(TAO)$415.924.10%
  • nearNEAR Protocol(NEAR)$2.845.57%
  • aptosAptos(APT)$5.227.27%
  • okbOKB(OKB)$52.460.54%
  • ondo-financeOndo(ONDO)$0.955.32%
  • kaspaKaspa(KAS)$0.1101563.01%
  • ethereum-classicEthereum Classic(ETC)$18.706.26%
  • internet-computerInternet Computer(ICP)$5.305.14%
  • gatechain-tokenGateToken(GT)$21.651.17%
  • official-trumpOFFICIAL TRUMP(TRUMP)$12.911.51%
  • crypto-com-chainCronos(CRO)$0.0971172.28%
  • mantleMantle(MNT)$0.741.06%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.2351802.36%
  • vechainVeChain(VET)$0.0284484.39%
  • render-tokenRender(RENDER)$4.696.74%
  • ethenaEthena(ENA)$0.3855219.24%
  • usd1World Liberty Financial USD(USD1)$1.00-0.04%
  • algorandAlgorand(ALGO)$0.2252795.51%
  • arbitrumArbitrum(ARB)$0.3984367.80%
  • filecoinFilecoin(FIL)$2.884.94%