In April, the trading of cryptocurrencies on major exchanges dropped sharply. This happened after Bitcoin's price fell from its highest ever point of $73,800. The trend continued into May, with both regular and futures trading volumes decreasing, leading to further drops in Bitcoin and other altcoins' prices.

The decrease in trading volumes was significant. Spot trading, which happens directly between buyers and sellers, fell by 32.6% to $2 trillion in April. Similarly, futures trading, where contracts are traded based on the expected future price of an asset, dropped by 26.1% to $4.57 trillion. This was the first time in seven months that such a decline had occurred.

Earlier in the year, trading volumes had surged following the approval and listing of US spot Bitcoin exchange-traded funds (ETF) in January. However, even the Bitcoin halving event on April 19, which is usually associated with price increases, failed to boost the market. Instead, the price dropped below $60,000.

Several factors contributed to the decline in trading activity. The U.S. Federal Reserve's concerns about inflation and stagnation weakened market confidence. Additionally, issues like higher CPI inflation data, tensions in the Middle East, and worries about potential bank runs added to the uncertainty. This change in sentiment led to negative net flows from spot Bitcoin ETFs.

Major exchanges like Binance and CME Group also saw decreases in trading volumes. Binance, the world's largest crypto exchange, experienced a 4% drop in its spot market share, while CME Group, the largest Bitcoin derivatives exchange, saw a nearly 20% decline in crypto trading volume.

Despite the slowdown in trading activity compared to the peak in March, it remains relatively high compared to previous months. However, concerns about pullbacks persist due to upcoming options expiry and economic data releases.

The recent rebound in Bitcoin's price from $60,630 to $62,585 was predicted by CoinGape, as chart patterns indicated a breakout above the trendline. This led to increases in other altcoins like Ethereum, Solana, Ripple, Dogecoin, and Shiba Inu. However, uncertainties about future economic data and options expiry could lead to further fluctuations.

If Bitcoin manages to break out of the descending channel it's been in since mid-March, it could signal a bullish trend, potentially leading to a price of $100,000. This would confirm a post-halving rally and could trigger a broader rally in the crypto market.