FTX US President Brett Harrison, US FTX President, said in an interview that volume has fallen “across the board” last week. “To me, it looks like we are in a period of low volume and lower trading activity after dips in general.”
“You usually see a lot of rapid volume from people trying to sell during a panic, but then a longer period of lower volume as people shy away from the market after the volatility,” Harrison said after the price drops. He said there should be “more confidence” from retail investors regarding cryptocurrency volumes.
Coinbase Global Inc, the largest US cryptocurrency exchange, has also seen daily Bitcoin volumes drop in the past week, with Bitcoin dropping from around $47,000 to $40,634. Coinbase shares closed at $232, down from $357 in November.
Trading fees make up the majority of Coinbase’s revenue. Coinbase shares fell after reporting lower-than-expected third-quarter earnings in November, due to lower currency prices and trading volume. said Owen Lau, one of the experts: an analyst at Oppenheimer & Co.
Lau said that while the first quarter is likely to be a “mini-winter for crypto,” there appears to be an upward trend as digital asset adoption continues. Prices may also drop so much that they appear cheap and entice buyers to come back.
Mike Novogratz, CEO and founder of Galaxy Digital Holdings, told CNBC yesterday that he’s waiting a little longer to buy cryptocurrency. Today, while Bitcoin was hovering at $41,990, he tweeted, “We’ve entered the buy zone.”