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Cryptocurrency trading
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Crypto spot trading volume fell 21.7% to $429.0 billion in July as Bitcoin dropped to $77,945.97. Inflation fears and possible Fed rate hikes are cooling demand for risk assets.
Background
Cryptocurrency trading has slowed as macroeconomic headwinds, particularly persistent inflation and potential Federal Reserve rate hikes, dampen investor appetite. Unlike traditional assets, cryptocurrencies lack yield or cash flow to offset rising interest rates, making them vulnerable to shifts in monetary policy. This has led to a significant contraction in trading volume across major exchanges.
How it unfolded
- Sep 1, 2026Bitcoin opened at $78,559 and declined to $77,945.97 by mid-morning, reflecting ongoing market weakness.
- Sep 2, 2026Data showed crypto spot trading volume on 14 major exchanges dropped to $429.0 billion in July from $547.9 billion in June, a 21.7% decline.
- Sep 4, 2026Bitcoin reached a four-month high of $82,262 on Thursday, before paring gains to about $79,800, as investors treated it as a safe haven.
Who’s saying what
- Analysts
- Bitwise's André Dragosch noted that Bitcoin's recent upswing comes as investors treat it more as a store of value than a risky tech stock.
- Caution
- Some analysts warn that the four-year cycle theory suggests further declines could be on the horizon, despite the recent price recovery.