Bitcoin Retraces 3 Weeks of Gains as Analysts Blame Macroeconomic Turmoil
Bitcoin is holding at around $21,340 after slumping for the sixth consecutive day.


Bitcoin (BTC) erased three weeks of gains after plunging 8.4%, its biggest single-digit decline in two months.
The largest cryptocurrency by market capitalization is now trading at about $21,340.
Two analysts with whom CoinDesk spoke said investor concerns about inflation and the likelihood of continued monetary hawkishness by the U.S. Federal Reserve had spurred the decline in crypto prices and other riskier assets. The tech-heavy Nasdaq index, whose fluctuations have largely correlated with bitcoin this year, recently fell over 2%. The S&P 500, which has a strong tech component, was down about 1.2%.
Paul McCaffery, co-head of equities for investment bank Keefe, Bruyette & Woods, noted the connection between plunging asset prices and Wednesday’s release of minutes from the Federal Open Market Committee’s (FOMC) July meeting showing the U.S. Federal Reserve continues to be concerned about inflation and might not slow the pace of interest rate hikes soon. Bitcoin’s price rose last week after an encouraging Consumer Price Index (CPI) suggested the Fed could ratchet back its approach because of easing inflation.
McCaffery said crypto performance will depend on macroeconomic conditions and the ongoing development of regulation.
Read more: Bitcoin Plunges Most in 2 Months, Dashing Recovery Hopes
“The reality is that for now the space is highly correlated to risk assets, so price action will follow the macro narrative for the most part, with the additional factor of global regulatory action weighing on the sector,” McCaffery wrote in an email.
Sylvia Jablonski, Defiance ETFs co-founder, CEO and chief investment officer, also highlighted voting and non-voting Fed members’ vocal unease with inflation, which remains at near four-decade highs despite the recent improvement shown by the CPI.
“Crypto is now on that list of thoughtful, innovative, disruptive technologies and it's viewed as sort of high risk by the average retail trader,” Jablonski said. “So what happens is they get this bad news, they sort of take it in and, lo and behold, the price of bitcoin falls.”
Ether (ETH), the second-largest crypto by market value, had risen sharply over the past month on enthusiasm about the expected September Ethereum protocol change known as the Merge. However, even ether recently fell to around $1,700, down 9.1% over the past 24 hours.
Read more: How ‘the Merge’ Will Change the Weird World of Ethereum Mempools
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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.
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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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