Trading volume on the major crypto exchanges collapsed

Trading in Bitcoin and Co. fell significantly in June. (Image: Visual Generation / Shutterstock)

Bitcoin is only worth half as much as it was in April. The declining interest of investors has led to a slump in trading volumes. But observers remain positive.

In mid-April the Bitcoin its all-time high so far reached. A unit of the main cryptocurrency was worth nearly $ 65,000. The Bitcoin rate is currently hovering between $ 30,000 and $ 35,000. In June it went down to $ 28,900 – there have also been sharp drops in the other crypto currencies in recent weeks. The trading volume on the major Crypto exchanges like Coinbase, Kraken, Binance and Bitstamp fell by over 40 percent in June compared to the previous month, according to Cryptocompare.

Lower prices in the crypto market

The data analysts specializing in the crypto market named the lower prices and lower volatility as reasons for the slump in trading volume. According to industry observers, the consequences are behind this the so-called China crackdown. The country’s government had stripped a large part of the mining companies based there, and with it, according to estimates, between 50 and 60 percent of the business at one stroke worldwide mining capacities – temporarily – destroyed. Many investors reacted by withdrawing from the market, others at least hold back for the time being.

Teddy Vallee, investment manager at Pervalle Global, compared the Chinese government’s action against the miners with a slap in the face of the crypto market, from which investors first have to recover. There are still no major returns from the stock exchanges, the financing rates are still negative and the number of new wallets is lower, as quoted by CNBC Vallee. The sharp drop in prices especially unsettled newcomers who entered at the peak of the Bitcoin euphoria and prices this year, explained Gabor Gurbacs from Vaneck.

Trading volume: June in the top 5

However, the crypto trading volume in June was well above the level of the same month last year, as Kaiko analyst Clara Medalie said. According to this, June is still in the top 5 months with the highest trading volume. The comparison with May is a bit unfair, since it was the absolute record month. Market observer Mancini from Trade the Chain is accordingly positive about the near future, as CNBC writes. Accordingly, positive signals can be heard from the Bitcoin derivatives market, where traders are getting more and more into bull mode from day to day.

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