Crypto Trading Volumes Slumped in June to the Lowest Level Since 2020 (Report)

According to CryptoCompare data, crypto spot and derivatives volumes have dropped more than 15% to $4.2 trillion since May amid an extended market correction. This shows that the market is still reeling from the historic damage it sustained in the second quarter.

Volume Slump Continues

Bloomberg reported that crypto trading volumes, which are closely tied to market sentiment, dropped more than 28% to $1.41 trillion in June, making them the lowest levels since December 2020. As the volume of current trading is down by more than 15% from May, it did not improve in July.

Fairlead Strategies co-founder Katie Stockton said that the low volume and static will continue until there is a market turn around.

“Volume has dropped due to the lower excitement from investors during a cyclical bearish market. Until crypto prices break out their bear-market cycle which could take months, we should expect volume to be lower than average.”

The CME Group’s June Bitcoin futures contracts only reached $29 Billion, which is the lowest level since July 2021. Notable is the fact that BTC closed the worst quarter in the last decade. It sat below $20,000 on July 1.

JP Morgan’s strategists predicted that BTC would continue to fall in such a bearish environment on Thursday. The average production cost of BTC fell from $24,000 at June’s beginning to $13,000 now.

Coinbase Lead in Question

Coinbase has fallen to second place in terms of trading volume due to the dramatic drop in trading volume.

Due to the ongoing crypto winter, the US giant suffered a significant drop in trading volume. This led to its removal from the top 10 crypto exchanges according to trading volume.

Bloomberg’s June market share report showed that it had only 2.9% among the top 30 companies in June, down from 5.3% and 3.6% in Q2. Mizuho Securities USA analyst Dan Dolev said that structural issues in the company’s business model have made it vulnerable to competition from other challengers.

Coinbase made the decision to reduce expenses after revenue fell 27% in Q1 YoY, amid growing concerns about whether its profit trajectory is on track. It later announced a reduction of 18% in its workforce, citing the perceived effects of an impending recession, and aggressive Fed rate hikes.

Read More

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together

Close Bitnami banner
Bitnami