CoinBase and Robinhood see 35%+ reductions in crypto trading

[legiteum]

https://www.citationneeded.news/issue-108/

When we talked before about Bitcoin becoming somewhat less "cool", the stories were anecdotal accounts from influencers and the like.

Now there's some hard data that shows that this year, crypto trading volume is way down. This is surely a bearish sign for the market. It would seem that consumers are finding other things to speculate on (and there are the anecdotal reports that sports gambling is cutting in to Bitcoin's market share).

[Ambatman]

In summary
You are trying to liken trading Bitcoin even if I'm not really a fan as same as gambling.
And on trading volume
It's quite normal to find  the volume of such in a bear market
Not to mention many consider this the accumulation stage
So some already moved their coins to a non custodial wallet.

[Odohu]

If cryto trading is experiencing this huge drop, then it definitely means that people are doing something something else and like you said, sports betting may be a factor. However, I have a different opinion about the reason and what I can point to direct is people holding more in their private wallets than trading in exchanges. Another reason could be that people are buying through ETFs which is one reason there is sharp decline in onchain Bitcoin transactions.

[Yamane_Keto]

The article's analysis is inaccurate; Coinbase and Robinhood do not represent the total crypto trading volume. TheBlock.co provides an analysis of trading volume data from Binance, Coinbase, Bitfinex, and others.


https://www.theblock.co/data/crypto-markets/spot/total-exchange-volume-daily

Similar trading volumes were observed in 2024, 2023, and 2021.

[Swordsoffreedom]

Yes you are right, crypto trading volume is down.

But when volume is down, consumer are leaving Bitcoin for sports gambling and therefore bearish for Bitcoin, this chain is absurd.

First, crypto trading volume is largely a measure of speculative activity and turnover. Bitcoin's monetary demand, hodler, institutional flows, or we using Bitcoin as hedge against fiat risk are not directly demonstrated by trading volume.

Rather, I have seen Coinbase said its crypto trading market share grew by 10%+ in Q2 for third consecutive quarter. This mean that while industry volume is weak, market participation hasn't completely disappeared.

[legiteum]

Yes you are right, crypto trading volume is down.

But when volume is down, consumer are leaving Bitcoin for sports gambling and therefore bearish for Bitcoin, this chain is absurd.

First, crypto trading volume is largely a measure of speculative activity and turnover. Bitcoin's monetary demand, hodler, institutional flows, or we using Bitcoin as hedge against fiat risk are not directly demonstrated by trading volume.

Rather, I have seen Coinbase said its crypto trading market share grew by 10%+ in Q2 for third consecutive quarter. This mean that while industry volume is weak, market participation hasn't completely disappeared.

I don't think it's "totally disappeared" and nobody is asserting that. It's just... down.

And I agree that trading volume is just one measurement, and there are other factors to consider.

[Charles-Tim]

But when volume is down, consumer are leaving Bitcoin for sports gambling and therefore bearish for Bitcoin, this chain is absurd.

In short, it is not right. I totally disagree with this. What I think happened is that people left crypto for stocks. I remember there was a thread recently that make use of South Korea as an example of this. Also you can see how the United States stocks increased, although money are pumped into the United States stocks more, but the time for bitcoin and other cryptocurrencies are coming.

Most people should not get me wrong, almost all altcoins are not store or value.

[coinlary]

Isn't  this a thing in bear market ?  When the market plunges people loose money, reduce trading , divert into other stuffs for the market to heal before getting back to action. Trading volumes usually increases during halving periods and declines when the bear takes over.

Coinbase experienced way more decline during the 2022 bear market by the way, I don't  think it should be really new to them .

[BlackHatCoiner]

This is surely a bearish sign for the market.

I mean, we're in a bear market for more than half a year already, I don't think I need the reduction in crypto trading to reveal that.

The reduction in crypto trading might also be the symptom as well. The cause for price drop is mostly because of a drop in liquidity. (People taking their money away from BTC and putting them into AI.) Therefore the decline in trading volume is fully justified.

[logfiles]

Is this supposed to even make news? It's not like this is the first bear market this has happened 
How many people around the globe even use Coinbase and Robinhood to trade Bitcoin vs Binance, OKX, Bitget, Bingex...

It's a bear market, spot traders don't do much trading except just buying and waiting same applies to those who open long positions. This is just common sense.

[Danish Ali]

Low volume in a quiet macro environment is standard market cycle behavior, not a death knell.

​People said the exact same thing in previous dull cycles right before the structural supply squeeze kicked in.

[free-bit.co.in]

This is surely a bearish sign for the market.

Have you forgotten that we are in a bear market?

On the contrary, I think this could actually be a pretty positive sign. I mean, declining trading volume is common during bear market, and when the volume drop this sharply, it could indicate that selling pressure is gradually drying up. This could be a sign that the bear market has already reached its bottom or may be getting close to the end.

[sergiorus]

How many people around the globe even use Coinbase and Robinhood to trade Bitcoin vs Binance, OKX, Bitget, Bingex...

I'm not sure what ''Bingex" is but you raised a great point. Robinhood was never a crypto native platform and Coinbase was always a ''suits'' kind of exchange. Not really wise to assess overall crypto trading activity without taking AT LEAST Binance, OKX and Bybit into consideration.

Then again, if there is contraction in activity, is it something outstanding compared to the previous bear markets or not? I mean it happened before, should anybody really be concerned?

[Luzin]

Have you forgotten that we are in a bear market?

The market cap of those two markets isn’t as big as the combined trading of others, so it seems we’re not seeing a big effect. But I like your statement that this is still in a bearish phase, so the drop is normal. There are two possibilities, positive and negative. Traders are holding fiat or Bitcoin, waiting for the market to improve. As long as this trading decline doesn’t make the price drop sharply, this situation can still be considered to be moving in a positive direction. If you look at the Spot ETF data, as of August 8, their outflows were almost at 0, meaning their inflows were bigger, which makes BTC very strong. From August 3–7 alone, it generated about US$853.5 million. Then from August 3–12, there was a net inflow of around US$652.5 million — there were outflows, but not too significant. So I think the decline might also have happened because they switched to ETFs if trading on Coinbase and Robinhood dropped. CMIIW

Source: https://farside.co.uk/btc/

[justdimin]

And what could we expect, when the market is going sideways, and there aren't many trading opportunities, people will stop making trades and that's logical because no one would want to lose money or have their funds stuck in the market due to the conditions of the market. Some people will look into other financial markets for trading opportunities, some will take a break and wait until the market starts moving again, and that's how it should be. Not only traders, even investors might do the same thing; moving into Gold or other assets, buying stocks, and waiting until the market reaches the point where it can be seen that the bottom has reached.

Those who think that Bitcoin is becoming less cool or boring just because the volumes are down need to rethink and gain some knowledge or think logically about the possible reasons. We can't expect a financial market to have the same level of inflow of funds at all times, because when market dynamics change, so do the volumes, and that doesn't mean it's getting less cool, but it means that traders and investors are waiting for the right time to make a move again.

[CryptoBuds]

And what could we expect, when the market is going sideways, and there aren't many trading opportunities, people will stop making trades and that's logical because no one would want to lose money or have their funds stuck in the market due to the conditions of the market. Some people will look into other financial markets for trading opportunities, some will take a break and wait until the market starts moving again, and that's how it should be. Not only traders, even investors might do the same thing; moving into Gold or other assets, buying stocks, and waiting until the market reaches the point where it can be seen that the bottom has reached.

Those who think that Bitcoin is becoming less cool or boring just because the volumes are down need to rethink and gain some knowledge or think logically about the possible reasons. We can't expect a financial market to have the same level of inflow of funds at all times, because when market dynamics change, so do the volumes, and that doesn't mean it's getting less cool, but it means that traders and investors are waiting for the right time to make a move again.

Hmm, you're right, it's very normal for trading activity to decrease in sideways. Some people are definitely waiting. Some may have gone into stock or AI or other asset. Some have bought BTC and put it in self custody, leaving it outside the exchange volume.

Trading volume will never directly tell you how many people are accumulating Bitcoin or how much BTC they are hodling long term.

I googled and saw that Robinhood's Q2 crypto revenue fell by 38%. But their equities and event contract activity increased a lot. So to understand where capital is going, you can't just look at crypto volume. You should also look at flow of other market. NGL, Bitcoin is becoming boring is what many people may say, there is no problem with that. But I don't think that the decrease in volume mean that investor are leaving Bitcoin.

[fullfitlarry]

https://www.citationneeded.news/issue-108/

When we talked before about Bitcoin becoming somewhat less "cool", the stories were anecdotal accounts from influencers and the like.

Now there's some hard data that shows that this year, crypto trading volume is way down. This is surely a bearish sign for the market. It would seem that consumers are finding other things to speculate on (and there are the anecdotal reports that sports gambling is cutting in to Bitcoin's market share).

Not sure if it is gambling that some of Bitcoin traders are going, maybe some of them are not really into sports betting to come up with this conclusion. And it's obvious that in bear market, Bitcoin is "not cool" as the prices decline.

It could also mean that others might be moving into other asset like stocks or forex elsewhere. Or perhaps those traders chooses to go into long term holding so there's not much movement. I don't know if there is data, but it's going to be interesting as well to see the numbers of wallets being created during the downtime (although not a good indication as one user can create multiple wallets).

[Peanutswar]

We can consider that its a factor too we are in the bear market, there is no hype for the crypto, most of the previous followers now focus into other things than trading crypto because of course why they will trade a crypto if there is no potential earning, and also there is a chance that these small volume of trades will be considered as a potential that people now accumulating their crypto so there are less volatile in the market they focus for accumulation.

[TastyChillySauce00]

Coinbase and Robinhood volume isn't enough to form a full picture about crypto trading volume in the US after ETF, it will only be relevant if both ETF and US crypto exchange volume data combined to determine how much crypto trading volume actually there is. What I know is the bitcoin ETF had a surge not too long ago and the traders might be moving over to ETF and eliminate a bigger counterparty risk from depending on centralized exchange, especially at times of bearish market where hacking is rampant and data breaches happen too frequently.

Would be better to compile global crypto trading data and ETF to form the more accurate picture of the state of the crypto trading volume but I know the trading volume is going down because we are in bearish market and traders will only comeback once the bearish market has passed.

[OgNasty]

The low price, reduced interest, and lower volume are all to be expected at this point in the cycle. We are seeing all the signs you would expect to see as the market reaches cycle lows. All you can really do is continue to buy if you believe that Bitcoin will make a comeback. Buy when others are fearful…