Bitcoin Spot Trading Into USD Dropped 25.5per in April
Categories: Bitcoin US
Bitcoin spot trading volume into the U.S. dollar decreased by 25.5% last month to 707,000 BTC, the lowest recorded figure for the fiat currency since August 2019. Meanwhile, USDT remained the stablecoin with the largest BTC volume in April, with 3.18 million BTC being traded.That’s according to CryptoCompare’s April 2022 Exchange Review, which also details that BTC volumes trading against the Japanese yen and the euro also saw declines last month of 19.7% and 23.3% respectively. Cryptocurrency markets declined in April, with Bitcoin and Ethereum closing the month down 17.3% and 16.9% respectively. These drops are a result of continued macroeconomic uncertainty following the war in eastern Europe and accelerating inflation figures throughout the world.CryptoCompare’s report that the fall in bitcoin spot volume traded into fiat currencies could also be explained by a surge in the popularity of stablecoins as investors likely moved to take advantage of yield opportunities in the space as well. According to on-chain analytics firm Glassnode, network profitability defined as a “drop in the percentage of addresses, entities and/or supply in profit,” when BTC was trading at around $33,800 between 60% and 62% of BTC investors were in a state of profit.Bitcoin’s correlation to equities has been rising over the last few months. That rising correlation has seen analysts at Bank of America challenge BTC’s role as an inflation hedge and instead suggest it trades as a risk asset. As reported, Bank of America’s analysts expect the correlation between BTC and equities to remain in the near future. Moreover, while bitcoin has often been compared to gold, the correlation between the flagship cryptocurrency and the precious metal has dropped to near zero since June 2021, and has kept trending down.