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 the expectation of price recovery.
According to the managing director of CryptoQuant, the so-called Ki Young Judata reveals that Binance has the highest Bitcoin volume in spot trading (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 skyrocketed to 84%. »
As a reminder on spot trading, users buy cryptocurrencies such as Bitcoin or Ethereum and benefit from immediate delivery, i.e. they are directly transferred between market participants, 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 on BTC spot trading, which places 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 across all platforms.
“We observe that last month, the volume reached a high point for the year. However, there is no real price change, which indicates that investors with a large portfolio are buying all the liquidity on the sell side. »
Binance offers zero-fee trading, only taking the difference rate 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 point of 4,323unheard of for nearly 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 maturing phasewhich would precede significant democratization and technological integration of the entire crypto ecosystem.
Bitcoin price analysis
The Bitcoin market is still relatively bearish over the period of October which is historically a positive moment for the crypto market but which did not have a bullish effect for the year 2022.
BTC now displays a price of 18,940.33 dollars according to TradingView data, this after briefly hitting 18,771.04 earlier in the day.
It should be noted, however, that the trend since Monday, October 17 seems to be moving from stagnation to descent, with the price approaching the $20,000 mark at the start of the week.
According to data from CoinMarketCap, the volume over the last 24 hours is $29.59 billion, which represents an increase of 27.30% compared to the day before.
In addition, the total market capitalization of Bitcoin is 363.33 billion dollars, while the dominance of Bitcoin in the crypto market has risen to 42.02% after falling 39.01% on September 8th.