In the turbulent digital currency market, Bitcoin open interest has once again hit the low point in March, causing a sensation in the market. At the same time, the trading volume of CEX exchanges has also reached a low point in nearly three years, which makes people wonder about the future trend of digital currencies. Let us explore the reasons and possible impacts behind these phenomena.

The volatility of the digital currency market has always been the focus of investors. As the market leader, Bitcoin's price fluctuations often cause shocks in the entire market. Recently, Bitcoin's open interest has once again hit the low point in March. This news has undoubtedly sounded the alarm for investors. In the past few months, the continuous decline in Bitcoin prices has become the norm in the market, and this time it has hit the low point, which has made people begin to re-examine the future direction of the digital currency market.

As for the reasons why Bitcoin's open interest price hit the low point, some analysts pointed out that the instability of market sentiment is one of the important factors. With the increasing uncertainty of the global economic situation, investors' confidence has been hit to a certain extent, resulting in capital outflows and market panic. In addition, the uncertainty of regulatory policies has also cast a shadow on the digital currency market, causing investors to have more concerns about market trends.

In addition to the decline in Bitcoin prices, the trading volume of CEX exchanges has also become the focus of market attention. The news that trading volume has bottomed out in the past three years has made people begin to re-examine the operation of digital currency exchanges. CEX exchanges have always been an important part of the digital currency market, and the decline in its trading volume will undoubtedly have a certain impact on the entire market. Some analysts believe that the reason for the decline in CEX trading volume may be related to the reduction in market liquidity, and the reduction in investors' trading activities is also an important factor.

Faced with the various fluctuations in the digital currency market, investors can't help but start thinking about future investment strategies. With the increase in market uncertainty, how to better grasp the pulse of the market has become a question that every investor needs to think about. When choosing investment targets, in addition to paying attention to price fluctuations, it is also necessary to consider market fundamentals and long-term development trends more and make more rational investment decisions.

In general, fluctuations in the digital currency market are inevitable, and investors need to keep a cool head and not be swayed by market sentiment. Regarding the phenomenon that Bitcoin's open interest price hit a low point and CEX trading volume declined, we need to deeply analyze the reasons behind it, look at the market trend rationally, and make investment decisions that are in line with our own risk preferences. The future of the digital currency market is full of challenges, but it also contains huge opportunities. Let us wait and see and witness the future development of the digital currency market together.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Coin Circle (120Btc.com) News: Bitcoin (BTC) started a rapid decline last Friday (1st), reaching a low of $25,655; then it pulled back to the $26,000 level, and continued to fluctuate slightly during the weekend that just ended. At the time of writing, it was reported at $25,957. 

Ethereum's trend is quite similar, continuing to fluctuate in a narrow range around $1,630. At the time of writing, it was reported at $1,636, up 0.13% in the past 24 hours. 

 Bitcoin's open interest in contracts hits a three-month low  

After Grayscale won the lawsuit against the SEC and then fell back, according to the latest data from the analysis platform Glassnode this morning (4), the open interest of Bitcoin perpetual contracts on Binance has reached a five-month low of about $2.76 billion. 

Usually when the open interest is at a relatively low point, the price volatility is not that large; however, judging from the historical data in March, the open interest was lower than it is now, but then the price of Bitcoin started a rapid rise. Whether BTC will rise in both price and open interest at the same time as last time remains to be verified.

CEX trading volume hits a 3-year low

On the other hand, the spot trading volume of centralized exchanges in August, which just ended, was US$422.95 billion, also a new low since October 2020. This means that the liquidity of the market has further decreased. If large funds want to pull or smash the market, the volatility may be more severe.