Spot trade volumes have reported a huge fall this year compared to earlier this year in January because of the continued decrease in crypto assets. According to CryptoCompare, a digital asset data company, overall spot trading volume on crypto exchanges dropped more than 30% sequentially by 1.81 trillion last month.
According to the report, global spot trade volumes have touched a low of $1.17 trillion since December 2020. The value of cryptocurrency spot trading volumes peaked in November 2021 at $3.2 billion. As a result of the Fed’s remarks, investors have continued to sell risky assets, causing significant volatility in crypto assets. Due to strong inflation, the Federal Reserve has clearly indicated that interest rates will be raised numerous times this year.
The prices of some of the most popular cryptocurrencies, such as Bitcoin and Ethereum, have corrected by 20–25 percent in the previous month. According to further data, top-tier spot volumes declined 21.2 percent to $1.6 trillion in January, while lower-tier spot volumes fell 66.3 percent to $175 billion. Currently, the top-tier exchanges account for 90% of spot trading volumes.
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