The trading volume of cryptocurrencies fell significantly in June, according to data from Cryptocompare, a price and volume tracking organization. The volumes traded fell by at least 40% compared to the previous month, with spot and derivatives trading suffering, among other things, from the mining and trading attack in China. The resulting volatility seems to have lost the interest of many traders.
The trading volume continued to decline in June
According to data from Cryptocompare, the trading volume of cryptocurrencies fell sharply in June. The data gathered by the price and volume tracking organization shows that trading in general has seen a plunge of at least 40%. Spot volumes suffered the most, with users trading 42.7% less than in May. A total of $ 2.7 trillion was traded last month.
Derivatives trading also suffered a sharp decline. Trade was down 40.7% from the previous month to $ 3.2 trillion. Analysts say this decline has to do with a primary reason: the mining and cryptocurrency crackdown that took place in China last month. This caused crypto traders to be suspicious of the future of the market and accelerated the drop in volume. Cryptocompare stated:
Headwinds continued as China continued its crackdown on Bitcoin mining. Spot volumes declined due to lower prices and volatility.
Internet traffic to stock exchanges has also decreased Exchange
As a result, internet traffic to stock exchanges as well fell drastic. The exchanges recorded 369.1 million visits in June, down 42.2% from the previous month, according to research by The Block. While Binance saw a bigger drop in trading volume of 56%, it was able to maintain the top spot in spot trading volume.
There could be other reasons customers are avoiding Binance right now. Several organizations have been blocking payments to the stock exchange since last week. In addition, since last month the exchange has encountered resistance in several countries for failing to comply with local laws.
But the most likely catalyst for this decline is the decline in bitcoin prices, which is affecting the cryptocurrency market. Bitcoin hit over $ 60,000 in April and is now trading in the $ 30,000 to $ 35,000 streak. This has discouraged swing traders and scared off the cryptocurrency craze that was in full effect earlier this year.
Some analysts believe this decline will continue in the near future. Scott Minerd, CIO of Guggenheim Partners, said Bitcoin’s “real low” could be around $ 10,000 last week. At the time of writing, Bitcoin is trading at just under $ 33,000.
What do you think of the drop in trading volume in June? Let us know in the comments section below.
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