First Mover: With Trading Volumes Slumping, Are There Too Many Crypto Exchanges?

davis196

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Quote from: Majharul Saiif on July 10, 2020, 11:09:40 AM

Bitcoin’s notorious volatility has practically disappeared during the most recent phase of the coronavirus-induced economic crisis – and that’s now taking a toll on trading volumes at cryptocurrency exchanges around the world.

For more than two months, bitcoin has stayed in a range between roughly $8,500 and $10,200, an astonishing stretch of stability for an asset whose price rose 13-fold in 2017, tumbled 73% in 2018 and then jumped 94% last year. It’s up 29% so far in 2020, after wild gyrations earlier in the year that have mostly faded since late April.

The largest cryptocurrency changed hands Tuesday at $9,257, down 1% on the day.

Full article link: https://www.coindesk.com/first-mover-with-trading-volumes-slumping-are-there-too-many-crypto-exchanges?amp=1

The crypto exchanges can't be "too many". There are enough crypto exchange platforms for the crypto market to handle.The main problem is that a few giant crypto exchange platforms are dominating the market(with the potential to influence or even manipulate cryptocurrency prices),while hundreds of small crypto exchange platforms are competing for the rest of the market.
There's no direct correlation between the amount of active crypto exchange platforms and the price volatility of Bitcoin.Trying to prove that such direct correlation exists would be impossible.

Strongkored

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I don't think because there are too many exchanges, I think why BTC prices have been so stable these past few months because the world economy is deteriorating and affecting the decisions of crypto traders.

maydna

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Quote from: btc_angela on July 16, 2020, 11:18:23 PM

Quote from: Bodykeepers on July 10, 2020, 06:02:39 PM

Their is also a possibility that bitcoin will drop to 8000$ based on my T.A bitcoin volatility are very low the reason is too many economic are down due to the pandemic happen we dont know when will be this pandemic end.

But it didn't go below $9k as predicted by some TA because as the OP has said, volume is low and there are no break out or anything. So the price is relatively stable now, it could be good though to buy and go long. I don't think that pandemic has a direct correlation, most of the countries have open up, it's just that the investors are just waiting for a bullish signal before buying again.

The market now becomes stable, although the price is still up to $9,300 and down below $9,200. That is not going too far than the other people's predictions, and I think even if the price is like that, we can still make a profit by using the moment to buy low and sell high. But I am sure it will be temporary, and after bitcoin find the right time to increase, the price will start to grow. And at that time, hopefully, the price can start the rally and break $10k to the high price.

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Quote from: teosanru on July 17, 2020, 12:02:05 AM

3. Thirdly just having too many exchanges can't be called a justifiable reason for low volatility. Volatility ends with greater adoption anr not wide number of exchanges.

Or just no volume. Spreading the volume across many exchanges might cause this, but on the other hand, the possibility of arbitrage is increasing so it will eventually lead to equilibrium at some point.

teosanru

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Quote from: Majharul Saiif on July 10, 2020, 11:09:40 AM

Bitcoin’s notorious volatility has practically disappeared during the most recent phase of the coronavirus-induced economic crisis – and that’s now taking a toll on trading volumes at cryptocurrency exchanges around the world.

For more than two months, bitcoin has stayed in a range between roughly $8,500 and $10,200, an astonishing stretch of stability for an asset whose price rose 13-fold in 2017, tumbled 73% in 2018 and then jumped 94% last year. It’s up 29% so far in 2020, after wild gyrations earlier in the year that have mostly faded since late April.

The largest cryptocurrency changed hands Tuesday at $9,257, down 1% on the day.

Full article link: https://www.coindesk.com/first-mover-with-trading-volumes-slumping-are-there-too-many-crypto-exchanges?amp=1

1. Yes there are way too many exchanges where bitcoin is being traded and this really creates grest slippage especially on smaller exchanges.
2. But having a lot of exchanges is a big advantage because most of these exchanges are centralized therefore just one or two exchanges would have made it more prone to scams as these exchanges would manipulate price more easily. Moreover hacking of just one exchange would lead great destruction.
3. Thirdly just having too many exchanges can't be called a justifiable reason for low volatility. Volatility ends with greater adoption anr not wide number of exchanges.

btc_angela

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Quote from: Bodykeepers on July 10, 2020, 06:02:39 PM

Their is also a possibility that bitcoin will drop to 8000$ based on my T.A bitcoin volatility are very low the reason is too many economic are down due to the pandemic happen we dont know when will be this pandemic end.

But it didn't go below $9k as predicted by some TA because as the OP has said, volume is low and there are no break out or anything. So the price is relatively stable now, it could be good though to buy and go long. I don't think that pandemic has a direct correlation, most of the countries have open up, it's just that the investors are just waiting for a bullish signal before buying again.

el kaka22

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Definitely too many exchanges, one of the main reasons why some coins are getting low volume because its spread around 8 exchange when it is not even loved in just one of them.

However if you remove all the other 7 of them and keep the exchange with the highest volume for both that coin and in general, you would have that coin volume going up, probably higher than all of the other 7 combined back then because it would have a higher volume in just one place that would create a hype for the coin. That is of course something risky because if the volume of it goes down once again, that means you are risking being delisted everywhere and that would create a trouble of not being listed anywhere at all. So you have to make sure that your volume will be enough to be listed.

ashmodeus

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Quote from: Yamifoud on July 16, 2020, 08:25:55 AM

Quote from: GreatArkansas on July 15, 2020, 07:22:36 PM

Just be careful when you are checking such trading volumes because most of them are fake.
I don't trust any exchanges at the moment especially their trading volumes, it's easy to fake for sure. Especially for those some cryptocurrency tracking websites where you can see the reported trading volume of every exchanges.

Agree with that.
Exchangers will try to fool traders as well just for the seek of their own benefits and to encourage traders to use their site. Actually, this is not happening all the time and not all exchanges do this but many of theme were have been doing this over and over again. For this wide and strong market competition, will it likely to see how these exchanges create fake volumes and paid reviews. That is why we don't just rely on their reviews nor to be amazed by their trading volume but it how these exchanges will run.

btw, we shall not talking about fake volume anymore i guess,since we know exactly CMC has reported data with liquidity rating,so far i've trusting that data,for example,on today,coinsbit trade volume on BTC/USDT pair almost 50 million ,but the liquidity score is very low which it just 302,since score range is from 0 - 1000, we know exactly their volume is mostly fake,if u compared with major exchange such as binance,or kraken or coinbase pro which average liquidity score above 850+.
anyway,how common exchange such as coinsbit etc have a high volume without no whales inside, i mean,on nowdays,we can see whale alert bot can tracking where whales send their assest for trading it,and so far mostly just go to major exchange, and i dont think people will deposited their money via FIAT gateaway for buy crypto on common exchange,its totally high risk for sure.

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Quote from: GreatArkansas on July 15, 2020, 07:22:36 PM

Just be careful when you are checking such trading volumes because most of them are fake.
I don't trust any exchanges at the moment especially their trading volumes, it's easy to fake for sure. Especially for those some cryptocurrency tracking websites where you can see the reported trading volume of every exchanges.

Agree with that.
Exchangers will try to fool traders as well just for the seek of their own benefits and to encourage traders to use their site. Actually, this is not happening all the time and not all exchanges do this but many of theme were have been doing this over and over again. For this wide and strong market competition, will it likely to see how these exchanges create fake volumes and paid reviews. That is why we don't just rely on their reviews nor to be amazed by their trading volume but it how these exchanges will run.

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Quote from: Majharul Saiif on July 10, 2020, 11:09:40 AM

~Snipped~
Bitcoin’s notorious volatility has practically disappeared during the most recent phase of the coronavirus-induced economic crisis – and that’s now taking a toll on trading volumes at cryptocurrency exchanges around the world.

The fact that trading volumes has reduced significantly has nothing to do with the number of exchanges. Majority of the exchanges available now were also available during the 2017/2020 epic run. If anything, then it's the fact that trading activities has gotten slow due to the global pandemic. And It's not just the crypto market that is experiencing. It'll continue this way until the pandemic ends or there's more positivity around because right now, there's only a few percentage of people willing to make trades. Some exchanges have even closed down due to this.

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Quote from: akram143 on July 15, 2020, 09:30:26 PM

Maybe stability on the price for very long made the people to hold their bitcoins which caused the overall daily trading volume to be affected.And also wash trading could be the reason why trading volume gets so higher which may got reduced or ignored by the coin tracking websites like coinmarket cap which results in showing us the real trading volume on all legit exchanges.

Yeah for sure. Majority of people who deposit on exchanges are there to trade but it has less to do with stability I think than the emotions people have right now. People are waiting for the bull run and they see this phase as the consolidation before the moon. I don't think they're right, but it seems like they really are expecting it!

akram143

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Maybe stability on the price for very long made the people to hold their bitcoins which caused the overall daily trading volume to be affected.And also wash trading could be the reason why trading volume gets so higher which may got reduced or ignored by the coin tracking websites like coinmarket cap which results in showing us the real trading volume on all legit exchanges.

GreatArkansas

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Just be careful when you are checking such trading volumes because most of them are fake.
I don't trust any exchanges at the moment especially their trading volumes, it's easy to fake for sure. Especially for those some cryptocurrency tracking websites where you can see the reported trading volume of every exchanges.

avikz

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Having too many crypto exchanges is not the reason for volume drop. It can't be! The volume drop may have been fueled by the low price volatility. I personally used to ride such price volatility 2-3 times a week but now the opportunity is gone. As the bitcoin price is slowly stabilizing, the fequency of trades has gone down.

On the flipside, it's good to see the price stabilizing. Because the higher volatility is actually a bottleneck for adoption by businessea, especially in price sensitive sectors. Lower volatility may make these businesses intrigued in adopting bitcoin. Just a positive thinking!

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Quote from: Bodykeepers on July 10, 2020, 06:02:39 PM

Their is also a possibility that bitcoin will drop to 8000$ based on my T.A bitcoin volatility are very low the reason is too many economic are down due to the pandemic happen we dont know when will be this pandemic end.

If you look very well on the volume of trade since the covid-19 pandemic, you see that bitcoin is still going well. Many have thought that because economies are nose dragging, that it will automatically affect the price if bitcoin as investment is expected to drop. But this fortunately for hodlers have not been that way.

ashmodeus

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probably we on scheme new economic movement,of course crypto is included also. it seems investor try to find what can survive of this pandemic. i just saw stocks assets like tesla still strong,or even more when this pandemic happen, even though dialy volume is relatively small,so it is with crypto also,even though trading volume is slumping,there still have a new movement for some altcoins, as we know, LINK,ERD,VET reach new ATH on this pandemic. so,i just thought,they(u can say investor or whales or whatever u like) seems quit for a while, watching,then join which good for investement on this situation.
TBH, i dont agree if u say bitcoin is a good investement by now, since btc just following stock market moving.so I don't see it all happening because of too many exchanges.

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Quote from: Majharul Saiif on July 10, 2020, 11:09:40 AM

Bitcoin’s notorious volatility has practically disappeared during the most recent phase of the coronavirus-induced economic crisis – and that’s now taking a toll on trading volumes at cryptocurrency exchanges around the world.

For more than two months, bitcoin has stayed in a range between roughly $8,500 and $10,200, an astonishing stretch of stability for an asset whose price rose 13-fold in 2017, tumbled 73% in 2018 and then jumped 94% last year. It’s up 29% so far in 2020, after wild gyrations earlier in the year that have mostly faded since late April.

The largest cryptocurrency changed hands Tuesday at $9,257, down 1% on the day.

Full article link: https://www.coindesk.com/first-mover-with-trading-volumes-slumping-are-there-too-many-crypto-exchanges?amp=1

You cant blame off directly into exchanges and i cant see that this one is a factors since these are just platforms that had been used by traders which are the ones who do dictate the market movement.

We might see some decrease and later on we do see some spike. These isnt something new that we should really be shocked on because anytime the market can really have this behavior

it all varies on the demand when we do talk on volume from time to time.

Bodykeepers

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Their is also a possibility that bitcoin will drop to 8000$ based on my T.A bitcoin volatility are very low the reason is too many economic are down due to the pandemic happen we dont know when will be this pandemic end.

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Bitcoin’s notorious volatility has practically disappeared during the most recent phase of the coronavirus-induced economic crisis – and that’s now taking a toll on trading volumes at cryptocurrency exchanges around the world.

For more than two months, bitcoin has stayed in a range between roughly $8,500 and $10,200, an astonishing stretch of stability for an asset whose price rose 13-fold in 2017, tumbled 73% in 2018 and then jumped 94% last year. It’s up 29% so far in 2020, after wild gyrations earlier in the year that have mostly faded since late April.

The largest cryptocurrency changed hands Tuesday at $9,257, down 1% on the day.

Full article link: https://www.coindesk.com/first-mover-with-trading-volumes-slumping-are-there-too-many-crypto-exchanges?amp=1

Topic: First Mover: With Trading Volumes Slumping, Are There Too Many Crypto Exchanges? (Read 194 times)