Daily Management Review

Trading volumes on cryptocurrency exchanges drop by 40% in June


Cryptocurrency trading volumes on major exchanges, including Coinbase, Kraken, Binance and Bitstamp, fell by over 40% in June, CryptoCompare reported in a review. The company, which supplies data on the crypto market, cited lower cryptocurrency prices and lower volatility as the reason for the drop.

Trading on major places fell by more than 40% in the last month, CNBC reported, citing a report from London-based CryptoCompare, a company that supplies data on the crypto market.  Researchers attributed the drop to regulatory pressure on cryptocurrency in China and a decline in both cryptocurrency prices and their volatility. 

Crypto market experts believe the decline is temporary and attribute it to the consternation of new investors who entered the market when cryptocurrency prices hit their record highs ($60,000 for bitcoin and $4,000 for ether). 

In June, bitcoin hit a one-month low mark of over $28,000 and finished the month down 6% (its lowest level since January). Spot trading volumes dropped by 42.7 percent to $2.7T and derivatives trading volumes fell 40.7 percent to $3.2T, according to CryptoCompare, cited by Reuters. China continued pressure on bitcoin miners in June and trading volumes fell as cryptocurrency prices dropped and volatility declined. Bitcoin fell by 35% in May, its losses being caused by Beijing's actions on the cryptocurrency sector. 

source: reuters.com, cnbc.com