Binance Sees Big Drop in Bitcoin Trading Volume
Binance faces a 57% drop in Bitcoin trading volume amid growing regulatory pressures. How is this affecting the crypto market and its competitors?...
- Binance's 7-day average spot trading volume for Bitcoin has dropped by 57% since the beginning of September, in contrast to stable trading volumes on other crypto exchanges.
- The decline in trading volume is attributed to mounting regulatory pressures on Binance, including investigations by the SEC and potential charges from the DOJ.
- Market makers may be deterred from trading on Binance due to the ongoing legal cases, leading to reduced volumes.
- Coinbase, Binance's U.S.-based competitor, has seen a 9% increase in volumes during the same period, suggesting traders may be seeking safer havens amid the regulatory storm.
- The termination of Binance's zero-fee promotion for BTC trading with TUSD stablecoin and reduced trading activity on Binance.US also contribute to the drop in Bitcoin trading volume.
- The decline in trading volume on Binance is part of a larger trend involving increased scrutiny from authorities like the SEC, indicating the tangible impact of regulatory pressures on the platform.
The sentiment of the article is negative, as it highlights the difficulties and challenges faced by Binance due to the drop in Bitcoin trading volume and regulatory pressures.