Binance’s Bitcoin trading volume drops following CFTC lawsuit and removal of no-fee trading

by James · April 13, 2023

Binance, the world’s largest crypto exchange, dominates the crypto market due to the huge trading volumes it registers on the exchange. However, Bitcoin spot and derivatives trading volumes on Binance have declined in recent months.

Over the past few years, Binance has recorded higher derivatives trading volume in US hours compared to other hours. However, volumes are falling during US hours since the CFTC lawsuit in March, Kaiko reported on April 13.

Bitcoin derivatives trading volume data for the BTC-USD, BTC-USDT and BTC-BUSD perpetual futures contracts indicated that trading volume typically rises between 13:00 and 20:00 UTC. The Q1 2023 data was compared to Q4 2021 and Q4 2022, with Binance’s Bitcoin trading volume nearly doubling in US hours.

“But not charted, we noticed a drop in volumes during US hours since the CFTC lawsuit,” noted Kaiko.

Will Binance’s Trading Volume Drop Affect Bitcoin Price?

Bitcoin trading volume for the BTC-USDT pair fell 90% on crypto exchange Binance after it ended zero-fee trading for all trading pairs except TrueUSD (TUSD). While the daily trading volume on the BTC-TUSD pair has increased to $170 million, it is still relatively low.

Binance made major changes to its zero-fee Bitcoin trading program and BUSD zero producer fee campaign as part of removing Binance USD (BUSD) following the crackdown by US regulators.

BinanceMarket share fell to 54% from 70% two weeks ago, its lowest level since Nov. 5, after the CFTC lawsuit ended trading without fees. Kaiko previously clarified that the CFTC had no impact on Binance’s trading volume, but today it agreed that it does have some impact.

While Bitcoin has jumped above $30,000, the upcoming price rally is likely to be restrictive. The BTC price is currently trading at $30,255, up 1% in the last 24 hours. Meanwhile, the ETH price has reached $2,000 after the Shanghai upgrade due to massive liquidation of shorts.

Also read: The London Stock Exchange offers Bitcoin futures and options trading

Varinder Singh

Varinder is a technical writer and editor, technology enthusiast and analytical thinker. Fascinated by Disruptive Technologies, he has shared his knowledge of Blockchain, Cryptocurrencies, Artificial Intelligence and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a significant period of time and currently covers all the latest updates and developments in the crypto industry.