The exchanges’ seven-day average trading volume fell to $352.6 million. That is a decrease of about 47.6 percent compared to November of this year. The market is currently in great uncertainty and that means that most people are sitting still at the moment, waiting for new price movements.
All problems at a glance
The problems for the financial markets all started with inflation suddenly kicking in. In response, central banks around the world raised interest rates to make capital more expensive and try to get people to spend less. What central banks hope for, and this is a strange idea, is that unemployment will rise and that the economy will cool down a bit. That in itself is starting to work out quite well, but it does not alter the fact that it is painful for the financial markets.
In addition, a lot has happened in the crypto industry in 2022. Consider, for example, the implosion of Terra in May of last year. That set off a chain reaction of liquidity problems within the industry and probably started the problems at FTX as well. FTX was, as it were, the icing on the cake, which gave the prices a final tick down. In that respect, it is almost inevitable that we will have a quieter and more stable year in 2023.