Bitcoin and Ethereum Waver–Why Did Trading Volume Drop?
Bitcoin and Ethereum prices dipped Friday amid declining trading volumes, despite gains of 4.6% and 5.9% respectively over the past week. Trading volumes for both coins fell significantly, with Bitcoin down 27% to $65 billion and Ethereum down 32% to $54 billion. This drop in activity followed Coinbase’s withdrawal of support for a key crypto market structure bill and ongoing tensions around the SEC’s approach to crypto regulation. Optimism about new regulatory measures, including the CLARITY Act, helped propel a recent price rally, but Senate delays and geopolitical developments have introduced further uncertainty. Meanwhile, U.S. political and monetary policy issues, such as tensions involving the Federal Reserve, also influenced market sentiment. Spot Bitcoin ETFs attracted $1.8 billion over four days, reflecting strong institutional interest, while retail investor activity remained subdued. The recent rally is primarily attributed to institutional and ETF-driven flows rather than widespread retail participation.
