The cryptocurrency exchange Binance led the ranking of declines in spot Bitcoin trading, with the metric down 57% since September 1, according to a report by K33.
The total value across all platforms fell by 48%. Meanwhile, Bitcoin spot volumes fell by a further 8% compared with August’s five-year low.
Analysts noted that Binance is at the forefront of the decline, while other platforms show relatively stable figures.
Analysts say Binance’s lag is due to ongoing legal battles with SEC and CFTC. However Coinbase, the nearest competitor, which is suing the regulator, posted a 9% rise in spot trading of digital gold in September.
Despite the decline in Bitcoin metrics, K33 noted a small rally in Ethereum and Binance Coin. In the last seven days, both coins rose 6%, trading above a three-week high.
According to the report, some indicators point to a bullish sentiment among traders of Bitcoin derivatives on the Chicago Mercantile Exchange. Last week there was a 19% increase in open interest for Bitcoin instruments by active market participants. However, the measure for ETH fell by 17%.
Moreover, researchers observed a notable divergence in Bitcoin’s correlation with the S&P 500 and the DXY.
Analysts say that in 2023 the direction of the crypto market largely depends on decisions regarding Bitcoin-ETF and regulatory sentiment.
According to CoinMarketCap, in the second quarter of 2023 the total spot trading volume across 20 leading Bitcoin exchanges fell 36% — from $2.6 trillion to $1.66 trillion.
In September, Matrixport analyst Marcus Tielen predicted a rise in Bitcoin dominance as the risk of price declines grows for many well-known altcoins.