The crypto market has been in a difficult situation for several months with an overall trend that alternates between decline and stagnation. And in the eyes of a number of investors, the current state of the ecosystem represents a significant opportunity to accumulate Bitcoin in anticipation of price recovery.
According to the CEO of CryptoQuant, the so-called Ki Young Judata reveals that Binance has the highest Bitcoin volume in spot trade (or spot trading in French) on all trading platforms. To this the director adds:
“Since bitcoin hit the $20,000 mark, Binance’s dominance of spot trading volume has increased to 84%. »
As a reminder of spot trading, users buy cryptocurrencies such as Bitcoin or Ethereum and benefit from instant delivery, ie. they are transferred directly between market participants, regardless of whether they are buyers or sellers.
Strong increase in volume for Bitcoin in spot trading
The famous American exchange platform Coinbase only holds 9% of the total volume of BTC spot trading, placing it far behind Binance according to Ki Young Ju, who also reports that the volume of exchange in spot trading for Bitcoin has increased 20 times in the last 6 months, and this on all platforms.
“We observe that volume last month reached a high for the year. However, there is no real price change, indicating that investors with a large portfolio are buying all the liquidity on the sell side. »
Binance offers no-fee trading and only charges the difference on trades, while Coinbase has one of the highest fee rates in the crypto industry. This could explain the difference in volume between the two main trading platforms.
On October 20, Glassnode said via a post on Twitter that the number of addresses sending Bitcoin to the platforms had reached a low of 4,323unheard of for almost two years.
Bitcoin is typically sent to exchanges to be sold, so these low numbers suggest that an accumulation phase is currently underway.
According to Mike McGlone, chief strategist at Bloomberg Intelligence, Bitcoin could enter what he calls a maturation phasewhich would precede significant democratization and technological integration of the entire crypto ecosystem.
Bitcoin price analysis
The Bitcoin market is still relatively bearish during October, which historically is a positive moment for the crypto market, but did not have a bullish effect for the year 2022.
BTC is now showing a price of 18,940.33 dollars, according to TradingView data, this after briefly hitting 18,771.04 earlier in the day.
However, it should be noted that since Monday, October 17, the trend appears to be moving from stagnation to decline, with the price approaching the $20,000 mark at the start of the week.
According to data from CoinMarketCap, volume over the last 24 hours is $29.59 billion, representing an increase of 27.30% compared to the previous day.
In addition, the total market value of Bitcoin 363.33 billion dollars, while the dominance of Bitcoin in the crypto market has increased to 42.02% after a 39.01% drop on September 8.