Take a look at the volume data for the past month to gauge the market’s momentum for the current period and next month.
BITCOIN AND ETHEREUM VOLUME CHARACTERISTICS IN May
Summarized data from Kaiko reveals a few notable features of BTC and ETH’s May volume in USDT and USD as follows:
Bitcoin and Ethereum trading volume fluctuations in May. Source: Kaiko.
The average daily trading volume for May was less than $5 billion. Although the market increased slightly in the last days of May, the volume did not have any significant breakthrough. The most active time for volume was in March with a peak of more than 20 billion USD on the day. At that time, the price of BTC exceeded 27,000 USD. Currently, the price of BTC is still above 27,000 USD but much less active.
It is worth noting here that in the last 2 months, the trading volume in USD has increased again, accounting for nearly 40%. Meanwhile, trading volume in USDT plummeted from 90% of March to around 60%. Investors often tend to sell when choosing to trade in USD, and often tend to buy when choosing to trade in USDT. Therefore, the high weight of USD volume is a sign that selling pressure is still high.
BINANCE IS REDUCING THE EFFECT ON BITCOIN PRICE
The exchange that holds the majority of trading volume plays an important role in liquidity and price movements. So far, Binance is still “champion”. However, a few notable signs in May are as follows:
Volume fluctuation and weight of USDT pair trading volume on exchanges. Source: Kaiko.
Notice the black area is the weight of Binance’s volume. From the beginning of 2023 until now, there has been no significant change in USDT pair trading volume on exchanges. But with Bitcoin, there is a significant drop in the weight of Binance. From 90% in March has decreased to 60% this month.
Combined with a decrease in trading volume. It can be said that investors are not really excited but also have somewhat reduced confidence in the Binance exchange. Therefore, the upward momentum is difficult to sustain in the first period of June.