January 2024 Crypto Trading Sees Biggest Volumes Since June 2022

Key Takeaways:

• January Surge: Spot trading volume on centralized exchanges witnessed a substantial surge in January, reaching levels not seen since June 2022.
• Bitcoin ETF Approval Impact: The approval of Bitcoin exchange-traded funds (ETFs) in the US played a crucial role in driving renewed interest and heightened trading activity in the crypto market.
• Coinbase’s Role: Coinbase, chosen as the custodian for the majority of US spot bitcoin ETF participants, experienced a surge in market share for the third consecutive month, reaching 5.42%.
• Derivatives Trading Decline: Derivatives trading volumes saw a decline of 2.79% in January, the first decrease in four months, with CME standing out as the platform with the most significant increase in derivatives trading volume.

In a significant upswing for the crypto market, spot trading volume across centralized exchanges soared in January, reaching levels not witnessed since June 2022. This surge in activity was propelled by the recent approval of Bitcoin exchange-traded funds (ETFs) in the United States, renewing investor interest in digital assets.

Source: CCData / CoinDesk

According to data from CCData, spot trading volume experienced a notable 4.45% increase compared to December, totaling an impressive $1.40 trillion. The approval of Bitcoin ETFs was a pivotal factor contributing to the heightened market activity. However, the aftermath of the ETF approval was marked by fluctuations in the Bitcoin price (BTC), with a surge leading up to the Jan. 10 approval followed by a subsequent decline.

Read More: Bitcoin Price Prediction 

CCData noted that the price action post-ETF approval indicated a potential end to a sustained uptrend that had persisted for several months. This insight suggests that the market might be entering a new phase with evolving dynamics.

Binance continued to dominate the market with a 2.73% increase in trading volume, reaching an impressive $473 billion. Despite maintaining its leading position, Binance saw a gradual decline in spot share throughout 2023, facing regulatory challenges that ultimately led to its founder and CEO, Changpeng “CZ” Zhao, stepping down.

Coinbase, selected as the custodian for most US spot Bitcoin ETF participants, experienced a surge in market share for the third consecutive month, reaching 5.42%.  This rise underscores the platform’s pivotal role in facilitating the growing interest in Bitcoin ETFs among US investors.

In the derivatives trading arena, January marked a decline of 2.79% to $3.25 trillion, signifying the first decrease in four months. The derivatives market, a substantial component of the crypto space, observed its market share drop from 71.4% in December to 69.9%. Notably, CME emerged as a standout performer, recording the most significant increase in derivatives trading volume.

While the crypto market is dynamic and subject to fluctuations, January’s robust trading figures indicate a sustained and growing interest in digital assets, driven in part by the approval of Bitcoin ETFs. As the market continues to evolve, investors and traders will be closely watching for further developments and opportunities in this rapidly changing landscape.

Know More: Bitcoin ETF & Ethereum ETF Timeline

Source: CoinDesk