{"id":63237,"date":"2023-09-19T23:29:48","date_gmt":"2023-09-20T03:29:48","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/binance-sees-big-drop-in-bitcoin-trading-volume\/"},"modified":"2023-09-19T23:29:52","modified_gmt":"2023-09-20T03:29:52","slug":"binance-sees-big-drop-in-bitcoin-trading-volume","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=63237","title":{"rendered":"Binance Sees Big Drop in Bitcoin Trading Volume"},"content":{"rendered":"
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Binance has seen a massive drop in Bitcoin trading volume this month according to new data from K33 Research. A new report revealed that the platform’s 7-day average spot trading volume for Bitcoin has plummeted by 57% since the beginning of September.<\/p>\n

The drop stands out when compared to the relatively stable trading volumes seen on other crypto exchanges, highlighting the difficulties Binance is currently facing.<\/p>\n

Regulatory Concerns Cast a Shadow on Binance<\/h2>\n

The dip in Bitcoin trading volume is closely tied to mounting regulatory pressures on Binance. The platform has recently encountered various legal issues, ranging from lawsuits to license rejections.\u00a0<\/p>\n

The Securities and Exchange Commission (SEC) has been actively investigating Binance in recent months. A lawsuit was filed against Binance, its U.S. division Binance.US, and its founder Changpeng “CZ” Zhao three months ago, with the SEC accusing the platform of violating multiple federal securities laws.\u00a0<\/p>\n

Additionally, prosecutors from the U.S. Department of Justice (DOJ) are reportedly considering pressing charges against Binance.<\/p>\n

According to Vetle Lunde, a senior analyst at K33 Research, “The ongoing DOJ and SEC cases vs. Binance may have dissuaded market makers from trading on Binance, explaining parts of the decline.”<\/p>\n

Lunde also pointed out that while some trading activity may have shifted to other platforms, it’s almost certain that Binance’s legal troubles are adversely affecting market volumes.<\/p>\n

Coinbase Gains as Binance Struggles<\/h2>\n

While Binance is grappling with a drop in BTC trading, the research showed that its U.S.-based competitor Coinbase has seen a 9% increase in volumes over the same period. The contrasting fortunes of these two exchanges indicate that traders might be seeking safer havens amid the crypto regulation storm surrounding Binance.<\/p>\n

Another factor that could be contributing to the reduced Bitcoin trading volume on Binance is the termination of its zero-fee promotion for BTC trading with TrueUSD (TUSD) stablecoin. This was one of the most liquid trading pairs on the platform, and its alteration might have deterred traders.<\/p>\n

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It’s not just the global platform that’s experiencing a drop in trading activity; Binance’s U.S. arm, Binance.US, is also taking a hit. According to data from crypto analytics firm Kaiko<\/a>, the weekly overall trading volume on Binance.US has plummeted to $40 million, down from nearly $5 billion earlier this year\u2014<\/strong>approximately a 99% decrease.<\/p>\n

The declining Bitcoin trading volume on Binance cannot be seen in isolation. It’s part of a larger picture involving increased scrutiny from authorities like the SEC.\u00a0<\/p>\n

As Binance tries to survive this difficult period, it is clear that regulatory pressures are having a tangible impact on its trading volumes.<\/p>\n<\/p><\/div>\n