Bitcoin Trading Hits 3-Year Low Amidst Binance’s Decline, Reports K33 Research

The crypto industry has experienced a notable 48% drop in trading volume throughout the month of September, with specific attention drawn to Binance as the primary catalyst for this downturn, according to data from K33 Research. The spot trading volume for Bitcoin also plummeted by an additional 8% in the past week, reaching its lowest point in nearly three years. Analysts from K33 have attributed this decline to the sharp decrease in activity on Binance compared to relatively stable volumes on other exchanges.

In a recent report by K33 analysts, it was revealed that Binance has been grappling with legal allegations from the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). These legal challenges have led to some market-making platforms distancing themselves from Binance. However, despite the SEC’s actions, Coinbase has witnessed a 9% growth in the trading volume of immediate Bitcoin settlements during September.

Simultaneously, analysts are emphasizing that despite the drop in trading volume, Bitcoin continues to lead a price surge in the spot market, with its value increasing by over 8% compared to the previous week. In addition to this, the prices of Ethereum (ETH) and Binance Coin (BNB) have surged by 6%, while the top 10 market cap cryptocurrencies have collectively seen a remarkable 45% increase in the past week.

According to K33’s analysts Lunde and Helseth, various indicators suggest an increasingly positive outlook for price appreciation among many futures traders on the Chicago Mercantile Exchange (CME). They highlight that over the past week, open interest in Bitcoin contracts has surged by 19%, with futures insurance fees also showing positive signals.

On the other hand, K33 Research analysts predict that 2023 will be marked by market turbulence due to various events, including company bankruptcies and the submission of Bitcoin ETF applications by major players. This change is reflected in Bitcoin’s correlation with traditional indices such as the S&P 500 and DXY.

Furthermore, the U.S. Federal Reserve (FED) is set to announce its interest rate decision on the morning of September 20, with a temporary pause expected at 5.5%. Nevertheless, many analysts anticipate short-term volatility in the cryptocurrency market following the FOMC meeting outcome.

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