[Bitcoin Now] August Trading Volume Shrinks Amid Virtual Asset Weakness

Trading Volume Drops to $13.62 Billion Last Month Compared to July
Virtual Asset Correction Seen as Temporary
September FOMC Expected to Be a Trigger

Last month, trading volume on domestic virtual asset exchanges decreased compared to the previous month. The main reason cited is the simultaneous decline in both Bitcoin and altcoins (virtual assets other than Bitcoin).

According to CoinGecko, a virtual asset market data site, on September 5, the trading volume at the five major domestic virtual asset exchanges-Upbit, Bithumb, Coinone, Korbit, and GOPAX-was $136.19518 billion last month. This is a decrease compared to the previous month's $160.23098 billion.

This year, domestic virtual asset trading volume showed a continuous decline throughout the first half. This trend is interpreted as liquidity having shifted to the domestic stock market. However, after the passage of the three major virtual asset laws in the United States in July, investor sentiment improved and trading volume saw a significant increase.

The decrease in trading volume last month is attributed to the weakness in both Bitcoin and altcoins. After surpassing $120,000 last month, Bitcoin continued to weaken and even fell to the $100,000 level by the end of the month. Ethereum also dropped from $4,900 to $4,400 after a correction, and Ripple (XRP) showed a similar trend.

An industry official stated, "At the end of July, after Bitcoin renewed its high, altcoins such as Ethereum showed an upward trend, leading to an increase in trading volume. However, in August, the overall market slowed down and trading volume rapidly decreased."

Another official added, "The domestic virtual asset market sees a lot of altcoin trading. As the upward momentum of altcoins slowed, trading volume also appears to have decreased."

Seasonal factors also played a role. Typically, August and September are periods when risk assets experience seasonal weakness. Yang Hyunkyung, a researcher at iM Securities, explained, "September marks the end of the fiscal year for the U.S. federal government, during which government agencies, pension funds, and hedge funds adjust their investment portfolios by reducing the proportion of risk assets such as stocks and increasing cash holdings. Due to fund rebalancing and caution over monetary policy, August and September usually see seasonal weakness in both stocks and Bitcoin."

However, the September meeting of the U.S. Federal Open Market Committee (FOMC) is expected to signal a rebound. A cut in the benchmark interest rate is one factor that can improve risk asset sentiment. Researcher Yang emphasized, "A benchmark rate cut in September could serve as an additional catalyst for the rise of virtual assets, including Bitcoin. Given that global liquidity remains robust, the current weakness in Bitcoin is likely a temporary correction."