According to data from The Block, cryptocurrency exchange trading volume has surpassed $1 trillion for three consecutive months, reaching $1.26 trillion by April—marking an all-time high for the market.
Key Market Insights
- Comparative Growth: NYSE's total trading volume reached $3.325 trillion in March 2021, while regulated crypto exchanges tracked by The Block accounted for $1.17 trillion. The crypto-to-traditional finance ratio surged from 8% (September 2020) to 35% (March 2021).
Expert Opinions:
- HideNotSlide (anonymous analyst): "Crypto is scaling rapidly relative to traditional finance."
- Dave Weisberger (CoinRoutes): "Crypto’s faster transaction speeds drive its exceptional trading volume."
Bitcoin’s Volatile April Performance
Price Swings:
- Early April: Gradual decline.
- April 8: Rally to ~$65,000 (new all-time high).
- Subsequent correction: Drop to $47,000 (27% retracement).
Drivers of Decline:
Global Regulatory Pressures:
- U.S. Treasury’s crackdown on crypto money laundering.
- Biden’s proposed tax hikes (warnings of potential market collapse).
- Investor Behavior: Risk-averse traders exiting positions.
Market Analysis: Diverging Perspectives
Huobi Research highlights growing bull/bear divergence:
- Bullish Case: Long-term investors view the dip as a technical correction, anticipating continued牛市.
- Bearish Concerns: Regulatory uncertainty and tax policies may intensify market volatility.
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BTC/ETH Short-Term Outlook
BTC (Bitcoin)
- Current Trend: 3-day rally to $53,523 (hourly chart shows breakout from consolidation).
Key Levels:
- Resistance: $54,000
- Support: $53,000
ETH (Ethereum)
- 24-Hour Movement: Peaked at $2,487, now consolidating near $2,460.
Critical Zones:
- Resistance: $2,500
- Support: $2,440
Contract Data (Huobi):
- BTC/ETH futures open interest rose slightly; trading volume declined.
- USDT OTC rate: ¥6.64.
DeFi Sector Update
- Total Value Locked (TVL): $942.8B (+2.1% daily).
- Top Performer: PancakeSwap (TVL +12.81%, trading volume +56.31%).
FAQ Section
Q: Why did Bitcoin drop 27% in April?
A: Regulatory fears and proposed U.S. tax policies triggered sell-offs.
Q: Is the crypto market still bullish long-term?
A: Yes, despite short-term volatility, many investors expect sustained growth.
Q: How does crypto trading volume compare to traditional markets?
A: Crypto’s ratio to NYSE volume grew from 8% to 35% in 6 months.
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always conduct independent research.