Cryptocurrency trading platform BitfinexAlpha has reported that bitcoin spot trading volumes have fallen sharply after peaking last month. Trading volumes on the exchange have declined following heightened market volatility and a continued decline in the value of bitcoin.
According to the latest report from BitfinexAlpha, the Consumer Price Index (CPI) improved in March, but remains elevated. The drop in monthly inflation was largely due to a sharp drop in energy prices. However, excluding food and energy, core inflation remains.
Nonetheless, we think enough has been done over the past year to pause rate hikes. While we expect a 25bp hike on May 3, we expect further policy tightening thereafter. The fact that the producer price index (PPI), or wholesale inflation, posted its biggest drop in nearly three years supports that view.
While sharp declines in energy prices and trade services somewhat exaggerated the decline in the index, there should be enough downward pressure elsewhere to give the Fed a break from further tightening of the economy.
The report also pointed out that OPEC+ announced production cuts earlier this month, which could lead to another surge in energy prices. However, downward pressure elsewhere should be enough to give the Fed a pause in further tightening the economy.
The cryptocurrency market has been going through a period of heightened volatility, with bitcoin’s value fluctuating rapidly in recent months. This leads to a drop in trading volumes as investors and traders become more cautious about their investments.
BitfinexAlpha is one of the world’s leading cryptocurrency exchanges, offering a wide range of trading options for Bitcoin and other cryptocurrencies. In recent months, the platform has been working to improve its services and security measures in response to growing demand for digital assets.
Despite the recent decline in bitcoin trading volumes, the cryptocurrency market remains highly volatile and unpredictable. Investors and traders should exercise caution and consider their investments carefully before entering into any transactions.