News View Non-AMP

Is Crypto Doomed? Shocking Trade Volume Decline in April Sends Investors Running!

Published by
Mustafa Mulla

Cryptocurrency trading volume took a downturn in April, marking the first monthly decline in seven consecutive months of growth. The decline, attributed to geopolitical tensions and reduced inflows into U.S.-listed spot ETFs, had a significant impact on both spot and derivatives markets.

What triggered this sudden downturn? Let’s dive deeper for answers.

Sharp Decrease in Trading Activity

According to a report by London-based digital assets data provider CCData, the combined volume in spot and derivatives markets fell sharply by 43.8% to $6.58 trillion, down from March’s record high of $9.12 trillion.

The decline was particularly noticeable in derivatives markets, which saw a substantial 47.6% drop to $4.57 trillion. Meanwhile, the spot market volume saw a less severe decrease of 32.6% to $2.01 trillion.

Understanding the Decline

The CCData report pointed to several factors behind this significant decline, including unexpected macroeconomic data, escalating geopolitical tensions in the Middle East, and negative net flows from U.S. spot bitcoin ETFs.

Bitcoin (BTC), the dominant cryptocurrency, experienced a notable 15% decline in April, breaking its streak of seven consecutive months of gains. This sell-off was triggered by renewed risk aversion amid geopolitical uncertainties, reduced expectations of rapid Fed rate cuts, and strength in the U.S. dollar index.

The broader cryptocurrency market followed suit, with the most liquid digital assets plummeting by nearly 20%. Consequently, the total market capitalization of the crypto market fell by 16.8% to $2.177 trillion during the month.

Impact on Binance Exchange

Binance, the largest crypto exchange by volume, also saw a decline in its market share to 41.5% in April, with combined spot and derivatives trading volume falling by 39.2% to $679 billion. This decline coincided with news of the exchange’s founder and previous CEO, Changpeng Zhao, being sentenced to prison for violating U.S. money laundering laws.

Since Zhao’s departure and Richard Teng taking over as CEO, Binance’s spot market share has rebounded slightly to 33.8%, according to CCData.

Overall, April’s decline in trading volume and market performance underscored the sensitivity of cryptocurrencies to macroeconomic factors and geopolitical events, highlighting the need for investors to navigate market conditions with caution.

Also Check Out: Hong Kong’s Bitcoin and Ethereum Spot ETFs Coming to Singapore

Feeling the crypto chill? What strategies are you using to navigate the market?

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Best Crypto Coins to Watch This Week and Buy

This week’s crypto spotlight shines brightly on a select group of coins capturing investor interest…

June 1, 2025

Missed Bitcoin at $1? Bitcoin Solaris at $5 Is the Closest You’ll Get to a Real Second Shot

Most investors who passed on Bitcoin early didn’t lack belief — they lacked access, context,…

June 1, 2025

MOONPIG Price Crashes 65% & Kaspa Holds as Punisher Coin See Whale Action: Is this the Next 1000x Pump?

Is meme coin season peaking, or just getting smarter? Right now, Kaspa (KAS) market sentiment…

June 1, 2025

Pi Network 2025 Year-End Price Prediction

The Pi Network price charts are showing signs of brewing tension, with the price moving…

June 1, 2025

XRP Price News: Key Levels to Watch This Week

The cryptocurrency market continues to keep traders on edge, and XRP is no exception. Let’s…

June 1, 2025

Ethereum Flips Bullish While Shiba Inu Prepares for Next Leg Up; Experts Consider This AI-Driven Asset Manager as the Future of DeFi

The Ethereum price soared over 5% this week and surpassed $2,700, while the Shiba Inu…

May 31, 2025