Some exchanges are very slow due to crypto winter
Categories: Crypto News
FTX US, the American affiliate of eponymous trading juggernaut, has seen lower trading volumes "across the board" in the last week, FTX US president Brett Harrison said in an interview. "To me it looks like we're in the period of just decreased volume and subdued trading activity following drops in general."
Following price declines, "usually you will see a lot of quick volume from people trying to sell off during a panic, but then a longer period of decreased volume as people shy away from the market after the volatility," Harrison said. There needs to be "more confidence" from retail investors for crypto trading volumes to come back, he said.Coinbase Global Inc, the largest US crypto exchange, has also seen a decline in Bitcoin spot daily volumes in the past week.
Trading fees make up the majority of Coinbase's revenue. Coinbase shares fell after reporting lower-than-expected third-quarter revenues in November, due to lower coin prices and trading volume. "Declining price could drive lower trading volume when it gets to the point to discourage traders to get engaged. There is a possibility that digital assets price to go flat such as getting into a crypto winter after a price decline," said Owen Lau, an analyst at Oppenheimer & Co.
While it's possible the first quarter may be another "mini crypto winter," there appears to be an upward trend as digital assets adoption continues, Lau said. Prices might also decline so much that they look cheap and entice buyers to come back in.