Spot market battle between two crypto giants has impact on BTC price
Spot market battle between two crypto giants has impact on BTC price
The analytical company CryptoQuant conducted research and found a correlation between changes in spot volumes between the two leading cryptocurrency platforms, Binance and Coinbase, affecting the cryptocurrency market.
It turned out that Binance significantly outperformed Coinbase in terms of spot volume, providing five times more trading figures.
However, despite the lower volume, US crypto exchange Coinbase continues to play an important role in the digital asset market due to its status as a custodian for major Bitcoin spot ETFs, including funds such as BlackRock's IBIT and Grayscale's GBTC, CryptoQuant reported.
Analysis of the data showed an interesting pattern, with an increase in spot volume on Coinbase compared to Binance often preceding a rise in Bitcoin's value, while a decline in its share led to falling prices.
In 2023, the spot volume ratio between Binance and Coinbase reached an all-time high, largely due to Binance's zero fee policy on BTC trading pairs. However, recent news about Bitcoin spot ETFs has contributed to volume growth on Coinbase, despite Binance's continued dominance.
The company emphasized that this competition between the two cryptocurrency market giants not only highlights their influence on the market but is also directly reflected in Bitcoin price dynamics. The dominance of each platform during certain periods has a significant impact on the value of the cryptocurrency, making this fight not just a business rivalry but a key factor shaping the market.
At the time of writing, BTC is trading at $62,015, showing a decline of 1.01% over the past 24 hours.
It is worth noting that Bitcoin has been under pressure recently due to many factors and is actively struggling to find a direction. At the same time, many market participants are optimistic about Bitcoin's price, predicting its further growth amid increased demand from retail and institutional investors.
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