Bitcoin and Ethereum Waver–Why Did Trading Volume Drop?

Market Overview - The cryptocurrency market experienced fluctuations with trading volumes decreasing, leading to a decline in Bitcoin and Ethereum prices despite earlier positive momentum [1][2] - Bitcoin's price reached $94,600 on Wednesday, currently trading around $95,300, reflecting a 4.6% increase over the past week, while Ethereum rose 5.9% to $3,250 during the same period [1] Trading Volume and Market Sentiment - Trading volumes for Bitcoin and Ethereum fell by 27% and 32% respectively, amounting to $65 billion and $54 billion [2] - The decline in trading volumes extended to other cryptocurrencies such as Solana, XRP, and Dogecoin [2] Legislative Developments - Coinbase withdrew support for a crypto market structure bill after lobbying efforts, amid tensions regarding the SEC's treatment of crypto firms [2] - Coinbase CEO Brian Armstrong expressed optimism about the bipartisan support for the bill despite procedural delays in the Senate [3] - Research analyst Carlos Guzman noted that optimism for the bill's passage was high, particularly with the release of a new version of the CLARITY Act [4] Broader Economic Context - Fed Chair Jerome Powell warned about potential undermining of the central bank's independence, coinciding with a decline in stocks while crypto and precious metals advanced [5] - Spot Bitcoin exchange-traded funds saw consistent inflows, totaling $1.8 billion over four days [5]