Bitcoin (BTC), which had hit a record low in volatility, suddenly plunged more than 10% on the 18th, falling below $26,000, the biggest drop since the FTX thunderstorm in early November last year. In the past seven days, Bitcoin has plummeted 11%, now reported at $26,093, while ether fell more than 10%, now at $1,666.
Market volume below average
It should be noted that the trading volume of the cryptocurrency market has been below the average level for a long time. According to CryptoQuant data , due to the large number of liquidations triggered during the market crash, the trading volume of cryptocurrency spot and derivatives surged last Thursday, but now the trading volume has dropped sharply again.
The Kaiko report shows that due to the stagnation of the market, the volatility of the cryptocurrency market continued to decline in August. Although the liquidity of international exchanges has improved, the spot trading volume has declined across the board. It is the lowest since October 2019, when bitcoin was at $10,000 and ether was at $350.
As the currency market plummeted, the CoinShares report showed that the cryptocurrency investment products of asset management companies such as Grayscale, Bitwise and ProShares had an outflow of US$55 million last week, which was different from the inflow of US$28.5 million in the previous week. CoinShares It is believed that this is mainly affected by the market sentiment that the Bitcoin spot ETF cannot be approved soon.
James Butterfill, director of research at CoinShares, said that the market turnover was far below average, mainly due to seasonal factors, making prices vulnerable to large transactions. Last week’s panic caused the total assets under management of relevant institutions to fall by 10% to 32.3 billion Dollar.
Further reading: Bitcoin plummeted because the "three landmines" detonated at the same time? Predict when the big market rebound will appear
Exchange ETH reserves hit a new low since 2018
In terms of Ethereum, according to Lookonchain monitoring , Vitalik Buterin, the co-founder of Ethereum, repaid 251,000 RAI yesterday at the wallet address vitalik.eth, and withdrew 1,000 ETH, and then transferred 600 ETH to Coinbase. sell off.
vitalik.eth repaid 251K $RAI on #Maker and withdraw 1,000 $ETH ($1.67M) yesterday.
Then deposited 600 $ETH ($1M) to #Coinbase 5 hrs ago. https://t.co/pw8ekIYSs1 pic.twitter.com/rkJo42OSlq
— Lookonchain (@lookonchain) August 21, 2023
However, data on the chain shows that most ETH holders have not followed up on Vitalik Buterin's move.
According to Glassnode data , the number of ETH held by the exchange is currently at the lowest level since 2018. According to CryptoQuant data , since August 7, the ETH reserve of the exchange has decreased by 2.5 million pieces to 14.9 million ETH, and the ETH reserve has declined. It can be interpreted that traders are transferring ETH to cold storage until the market environment improves, rather than selling.
