Investors are less interested in virtual currencies after the Bitcoin collapse
Trading volume on the largest exchanges, including Coinbase, Kraken, Binance and Bitstamp, fell more than 40% in June after the crashes of Bitcoin and other cryptocurrencies.
In June, Bitcoin temporarily fell to $ 28,908. At the same time, the daily transaction value reached 138.2 Billion USD on June 22nd, 42.3% less than the peak day in May.
However, Reuters cited the report that China was the main catalyst for the decline in trade volume. Beijing’s tightening of measures to combat the cryptocurrency industry had a bigger impact than ever. It directly affects the price of bitcoin as well as bitcoin mining operations that mainly take place in this country.
Teddy Vallee, Chief Investment Officer at Pervalle Global, said, “China’s aggressive cryptocurrency activity has created a lot of fear in the market. The crypto ecosystem was attacked directly. That has consequences. ”Vallee emphasized that he had not seen large inflows of money into the exchanges, with a lower number of new wallet openings.
Key factors that trigger the fall
In late June, China passed a policy banning cryptocurrency trading just as it was about to introduce its own currency. At the same time, China has also eliminated a number of cryptocurrency mining pools.
China accounts for 50-60% of all cryptocurrencies mined worldwide. Gabor Gurbacs, Director of Digital Asset Strategy at VanEck, says that when miners leave China, they don’t trade as much as the bitcoins they mined.
The United States and many other countries have also taken steps to control digital currencies and prevent criminal activity related to this asset. With increasing pressure, investor sentiment is changing and cryptocurrencies are becoming less attractive.
Mr Gurbacs said summer is usually a time of less trading, even for the stock market. In the meantime, investors can still feel the pain when the cryptocurrency market has suffered such a severe crash recently. At the top, Bitcoin price hit nearly 65,000 USD in when ether to 4,000. increases U.S. dollar.
When the cryptocurrency market exploded, many investors flocked to this asset class. However, you lose money instantly. Attempts to bottom out were also unsuccessful when the digital currency fell sharply. Bitcoin is currently just over 33,000. value U.S. dollar, half of the high a few months ago. Fear also reduces the volume of transactions.
Despite the significant drop in trading volume, however, it is still significantly higher than last year. The trading volume in June is still one of the 5 worst trading months on record, even if it has declined sharply compared to May.
Vu Hao (according to CNBC)
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