Analyst links sharp drop in Binance ETH volume to macro factors, Vitalik's selling

Ethereum (ETH) spot trading volume on Binance is more than six times lower than its futures volume, indicating a severe decline in investor sentiment, crypto analyst Darkfost said on X. The analyst explained that recent U.S. Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) data are unlikely to support a Federal Reserve interest rate cut. Rising oil prices are also a negative for the U.S. economy, with the impact expected to appear in March and April inflation data. As a result, many investors and institutions are moving away from risk assets like cryptocurrencies, with altcoins including ETH being hit the hardest. While ETH futures trading volume on Binance remains larger than spot, it has also decreased by about $4 billion since January. Darkfost suggested that selling by the Ethereum Foundation and its founder, Vitalik Buterin, could also be affecting sentiment. Although Buterin announced in late January that he would sell 16,384 ETH to support the ecosystem, he has recently sold more than the stated amount.