Decentral Block Post

The dominance of cryptocurrency exchange Binance in trading volume market share has slipped over the past two weeks following a lawsuit from the United States commodities regulator and its decision to halt some zero-fee trading.

In an April 4 newsletter blockchain analytics platform Kaiko reported Binance “lost 16% market share of trade volume,” with its market share at 54% as of the end of Q1.

The U.S. Commodity Futures Trading Commission (CFTC) sued Binance on March 27 alleging it flouted regulatory compliance through violations of derivatives laws by offering trading to U.S. customers without registering.

Kaiko said Binance still takes in more volume than the rest of its combined competitors but its March 15 decision to end zero-fee spot and margin trading for 13 trading pairs including BNB (BNB), Bitcoin (BTC) and Ether (ETH) trading pairs with multiple fiat currencies and stablecoins largely contributed to the firm’s downfall.

“Overall, Binance’s excess volume largely vanished with the end of zero-fee trading, which was reflected in an even dispersal in market share among the remaining exchanges,” Kaiko reported.

Cryptocurrency markets have been trading within an unusually tight 5% range since March 17 as conflicting forces continue to pressure the sector. Consequently, in the past 7 days, the total market capitalization gained 3.8%, which was driven mainly by Bitcoin's (BTC) 3.6% price increase and Ether's (ETH) 5% gain.

On March 27, the Commodity Futures Trading Commission sued Binance and Changpeng "CZ" Zhao for allegedly violating trading and derivatives rules, heightening regulatory uncertainty. According to the lawsuit, Binance provided access to leverage for customers trading on the spot and futures markets.

The announcement came just five days after Coinbase received a Wells Notice from the U.S. Securities and Exchange Commission (SEC), which could target the exchange's staking program, listed digital assets, wallet and Coinbase Prime services.

Similar actions occurred outside the U.S., after Japan's Financial Services Agency (FSA) March 31 announcement that several foreign cryptocurrency exchanges, including Binance, Bybit, MEXC Global and Bitget had been operating in the country without proper registration, in violation of the country's laws.

The lateralization trend that began in mid-March has repeatedly tested the crypto market’s $1.14 trillion market capitalization support. The movement suggests that investors are hesitant to place new bets until more information on the lawsuits against Binance and Coinbase is available.

Bitcoin’s (BTC) price initially dipped, but then recovered on April 3. The volatility happened after several OPEC+ members announced plans to cut oil production totaling 1.65 million barrels per day until the end of the year. Some analysts expect this move to tighten supply, resulting in higher prices at the pump. That may in turn boost inflation, warranting a continued hawkish stance from central banks.

Initially, the United States dollar index (DXY) rose but it could not sustain the intraday rally. This suggests that the market participants believe the event will not cause any major deviation in the Federal Reserve’s policy. A weaker DXY is generally considered a positive for risky assets.

Cryptocurrencies have remained strong in the face of adverse macroeconomic news and regulatory action against crypto firms in the past few days. When the price of an asset does not crack with negative news, it shows that traders are not panicking and selling their holdings.

Could Bitcoin overcome the obstacle at $30,000 and start a bull run? Will altcoins also join the party? Let’s study the charts to find out.

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The S&P 500 index (SPX) picked up momentum after breaking out of the wedge pattern. Buyers will try to push the price to 4,200 which is likely to act as a strong barrier.