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Bitcoin Rally Evaporates as Price Tumbles Below $40K Friday Afternoon
The crypto’s divergence from stocks earlier this week has proven to be short-lived.
By Brian Evans
Updated May 11, 2023, 3:52 p.m. Published Mar 4, 2022, 8:41 p.m.
, the largest cryptocurrency by market capitalization, was changing hands at $39,300 at press time, dropping below $40,000 for the first time since Monday as stocks continue to sell off over the war in Ukraine.
- It’s been quite the round trip for bitcoin this week, with the bulls encouraged by a dramatic move higher from midday Monday that carried the price from $38,000 to above $45,000 early Wednesday. The divergence from struggling stocks didn’t last long, though, and bitcoin’s hasty retreat has picked up steam this afternoon.
- Checking stocks, the Nasdaq is down another 2% Friday and the S&P 500 index off 1%. The action in Europe is way worse, with Germany's DAX shedding 4.4% , France's CAC 40 down 5% and Italy's stock exchange off more than 6%.
- Not to be forgotten is the U.S. Federal Reserve, with Chair Jerome Powell on Tuesday – worried about the economic impact from the Russia-Ukraine war – nevertheless promising a 25 basis point rate hike later this month. The U.S. central bank doesn’t need more ammunition for tightening monetary policy, but got some anyway in Friday’s nonfarm payrolls report. The data showed a whopping 678,000 jobs added in February versus expectations for just 400,000.
- Adding to market pressures Friday was a Bloomberg report the Biden administration is considering banning oil imports from Russia. That has helped add to the big oil rally, with WTI crude now higher by 7.1% to $115.35 per barrel.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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