Privacy token liquidity hits record low of $5 million amid market volatility, report

According to a new report from Caico, the amount of privacy tokens has dropped to just $5 million.

This drop follows the cancellation of several trading pairs by OKX for not meeting certain criteria.

Regulatory challenges behind cancellation

Regulatory pressures have particularly affected tokens such as Monero (XMR) and Zcash (ZEC), which have led to their delisting from platforms such as Binance due to low liquidity.

Despite the market turmoil, the end of 2023 saw several significant developments. With last week's selloff, trading on Korean exchanges hit multi-year highs. Bitcoin's share rose to 32%, a level not seen since 2020, when altcoin trading volume was generally declining.

This change in transaction dynamics comes despite increasing regulatory efforts in South Korea, including proposed regulations for crypto exchanges and a ban on crypto purchases via credit cards.

The SOL (Solana) market has also seen positive trends. At times, the trading volume of SOL exceeds the combined volume of Bitcoin and Ether on multiple exchanges, a rare occurrence in the crypto world. This increase in SOL's market share, especially on Ether, marks a breakthrough in the altcoin domain.

Meanwhile, PYUSD has had a slow start in the crypto trading sphere. Although it is listed on several centralized exchanges, its trading volume is very low compared to stablecoins such as Tether (USDT).

Bitcoin braces for volatility as SEC rules on spot ETFs

January 10 is an important moment in the world of cryptocurrency, the SEC is set to decide on the Bitcoin ETF. Regardless of the outcome, the market is encouraging more volatility.

This comes after Bitcoin ended the week on a positive note, following a price collapse that led to hundreds of millions in outflows. At first, the analyst's speculation about the position of the Bitcoin ETF decision, further reports indicate deeper issues.

Before the crash, market indicators such as price volatility indicated trouble. On major exchanges such as Binance, Coinbase and Kraken, the price of the slip increased by more than 0.02% on January 2nd, indicating that the price of Bitcoin is falling around $45,000.

Futures markets paint a picture of an overheated market. In early December, demand for Bitcoin perpetual futures hit a record high of $10 billion against the USD, the highest since November 2021.

This increase in open interest indicated an increase in leverage in the market. Additionally, the high volume in the options markets, particularly Bitcoin options on Deribit, indicated that traders are expecting volatility in terms of spot ETF decisions.