Centralized exchanges face a hard blow amid cooling liquidations

Bitcoin’s sideways move near $90,000, along with declining trading volumes on centralized exchanges, has calmed the broader cryptocurrency market.

According to data provided by CoinGecko, the daily trading volume of Binance, the largest crypto exchange by trading volume, decreased by 15.2% to $26.6 billion. The CEX platform has listed 385 tokens with 1,260 trading pairs so far.

Data shows that Bybit transaction volume decreased by 14.6% to $5.7 billion. The Dubai-based trading platform listed more tokens (512 crypto assets) than Binance, but fewer trading pairs (currently 630, the most popular being Bitcoin (BTC)/USDT) than the largest crypto exchange.

According to CoinGecko data, the transaction volume of Seychelles-based OKX, the third largest CEX, decreased by 18% to $4.6 billion.

According to CoinGecko, the decline in CEX trading volume resulted in a 4% decline in total decentralized exchange trading activity to $9 billion across all platforms.

Bitcoin’s consolidation near $90,000 has caused a market-wide cooling, with some of the leading cryptocurrencies – Ethereum (ETH), BNB (BNB), and Toncoin (TON) – entering overbought territory.

This movement is generally considered normal, as both long- and short-term investors will try to make profits due to attractive prices.

Crypto liquidations are down

According to data from Coinglass, total crypto liquidations in the last 24 hours have been steadily decreasing from $869 million on November 12 to $231 million ($141 million long and $90 million short).

Crypto liquidations | Source: Coinglass

Bitcoin took the lead with liquidations of $37.3 million, including $24.7 million long and $12.6 million short.

As liquidations subside, investors expect bullish momentum, with total crypto open interest rising 1.5% to $104 billion, according to Coinglass data.

An increase in total OI could indicate higher market-wide volatility as the market is trending in “extreme greed” territory.

Bitcoin’s momentum in particular could potentially drag the broader market along with it due to its 56.2% dominance in both cases.