Tuesday, July 13, 2021
Hindi News
Subscribe Us
Upload News
  • About
  • Subscribe Premium
  • Contcat Us
21 °c
Delhi
18 ° Fri
17 ° Sat
15 ° Sun
15 ° Mon
Press24 News English
No Result
View All Result
  • Login
  • Register
  • Home
  • Top News
  • Politics
  • National
  • World
  • Business
  • Entertainment
  • Lifestyle
    • Travel
    • Health
    • Fashion
    • Food
  • Tech
    • Science
  • Sports News
  • Opinion
Press24 News English
No Result
View All Result
No Result
View All Result
Press24 News English
Home World

Cryptocurrency trading volume plunges as interest wanes

Press24 News by Press24 News
July 13, 2021
in World
196 15
0
285
SHARES
468
VIEWS
Share on WhatsappShare on TwitterShare on Facebook

READ ALSO

As England fails to bring it home, a soccer-mad nation copes with a near-miss

Australia Covid live updates: Sydney lockdown financial support to be announced, exposure sites in Victoria | Australia news

Art at the cryptocurrency conference Bitcoin 2021 Convention at the Mana Convention Center in Miami on June 4, 2021.

Marco Bello | AFP | Getty Images

Cryptocurrencies are in a summer slump as they navigate a two-month correction period following a string of negative stories.

Trading volumes at the largest exchanges, including Coinbase, Kraken, Binance and Bitstamp, fell more than 40% in June, according to data from crypto market data provider CryptoCompare, which cited lower prices and lower volatility as the reason for the drop.

In June the price of bitcoin hit a monthly low of $28,908, according to the report, and ended the month down 6%. A daily volume maximum of $138.2 billion on June 22 was down 42.3% from the intra-month high in May.

The report pointed to China as a major catalyst, according to Reuters, which reported on it earlier Monday. China’s latest of many efforts over the years to crack down on the industry have had a greater impact than ever before. Investors and experts in the cryptocurrency ecosystem still see a long-term positive trend for bitcoin and other cryptocurrencies, however.

“The Chinese crackdown has caused a lot of fear, which is showing up in markets,” said Teddy Vallee, chief investment officer at Pervalle Global. “The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips.”

Vallee added that he still isn’t seeing large flows back off exchanges, funding rates are still negative, the number of new wallets is lower.

Factors behind the slowdown

At the end of June, China ordered a halt to cryptocurrency as it prepares to launch its own state-backed digital currency. That shuttered mining operations across various provinces that had hosted 50% to 60% of all of bitcoin’s mining power.

Gabor Gurbacs, director of digital assets strategy at VanEck, noted that as miners left China, they weren’t transacting as much with the bitcoin they’ve mined.

Additionally, the emerging ESG narrative around bitcoin’s proof-of-work consensus mechanism and negative regulatory undertones from the Financial Action Task Force, the intergovernmental anti-money laundering watchdog, have dragged the mood down even further in the markets, Ben Forman, managing partner at alternative investment firm ParaFi Capital, told CNBC. ESG stands for environmental, social and governance factors.

“Once these stories began to permeate through the market in May, sentiment dropped to single-digit levels on a scale of 1 to 150,” said Nick Mancini, research analyst for crypto sentiment analytics platform Trade the Chain. “Eventually, this resulted in the trading volume for bitcoin dropping by nearly half since its peak, and it’s further down 32% from its June average.”

Gurbacs also said that summer can be a time of lower volume, even in equities, and that investors may still be feeling the pain after the crypto market has lost so much of its value this year.

This year too, he added, the price of bitcoin climbed as high as $60,000 and ether as high as $4,000, which brought a lot of new interest and new investors into cryptocurrency that haven’t weathered a bitcoin bear market yet.

“People are getting tired of the rock pools,” Gurbacs said.

When cryptocurrencies hit their all-time highs this year “a lot of people invested upwards and a lot of new people invested at the top, and they lost money,” he added. “Half the market is gone, we can’t expect the same volumes when the market is basically a lot of people who are new to the space who got spooked.”

Volume still higher than a year ago

Despite the dramatic drop in trading volume, it’s still much higher than it was last year, Clara Medalie, research lead at crypto market data provider Kaiko.

“Volumes plunged in June on pretty much every exchange, however, overall volumes are still magnitudes greater than they were one year ago today,” Medalie told CNBC.

“June volume still ranks in the top five months of volume ever recorded,” she added. “While the drop was steep compared with May, it is an unfair comparison because May saw the highest volumes ever recorded due to unprecedented liquidation events. Volumes have reverted to early 2021 amounts and are still massive compared with 2020.”

Mancini of Trade the Chain still sees a more bullish — rather than bearish — outlook for crypto and expects volatility and volume to return to previous highs.

“The bitcoin daily candle Bollinger Bands are now tightening very similar to what we saw in July 2020, which resulted in explosive bullish price action,” he said. “We believe that with more institutions publicly announcing crypto trading and research divisions, sovereign nations adopting bitcoin as currency, and miners moving to more democratic nations, bitcoin is poised for growth instead of shrinking.”

Bitcoin derivatives peaked at $230 billion in May before waning to $45 billion on July 9, according to Trade the Chain.

“The one positive set of news from the derivatives markets is that the bitcoin options put to call ratio is now sitting at 0.60, from a high of 0.65 in June, which means that traders are becoming less bearish as the months progress,” Mancini said.


Disclaimer: This post has been auto-published from an agency/news feed without any modifications to the text and has not been reviewed by an editor.

Source link

Tags: cryptocurrencyinterestplungestradingvolumewanes
SendTweet71Share114Share29

Related Posts

World

As England fails to bring it home, a soccer-mad nation copes with a near-miss

July 13, 2021
World

Australia Covid live updates: Sydney lockdown financial support to be announced, exposure sites in Victoria | Australia news

July 13, 2021
World

Cuba protests: Cubans take to streets in rare demonstrations over lack of freedoms and worsening economy

July 13, 2021
World

Iraqi state TV says fire in coronavirus ward kills 36 people

July 13, 2021
World

FDA expected to issue new warning on J&J COVID jab | Business and Economy News

July 13, 2021
World

Israel Details Administering 3rd Shot for Immunocomprised People

July 13, 2021
No Result
View All Result

Recent Posts

  • Cryptocurrency trading volume plunges as interest wanes
  • Rajnikanth Says No to Politics, Jackie Chan Wants to Join Xi Jinping’s CPC: Off-Reel Aspirations of Icons
  • Four Children Ghaziabad News: Woman gave birth to 4 children in Ghaziabad
  • Face it: Anyone paying attention knows why Devin Booker was benched in Game 3 of NBA Finals
  • Indian Stem Cell, Developmental Biologist Part of WHO Advisory Committee

Recent Comments

    Press24 News

    सच का साहस

    Press24News is venture of Kotgari News & Media Network (KNMN). Kotgari News Network working as news & media agency across India & abroad

    सच का साहस

    Categories

    • Business
    • Entertainment
    • Fashion
    • Food
    • Health
    • Lifestyle
    • National
    • Opinion
    • Politics
    • Science
    • Sports News
    • Tech
    • Top News
    • Travel
    • Uncategorized
    • World

    Recent Posts

    • Cryptocurrency trading volume plunges as interest wanes
    • Rajnikanth Says No to Politics, Jackie Chan Wants to Join Xi Jinping’s CPC: Off-Reel Aspirations of Icons
    • Four Children Ghaziabad News: Woman gave birth to 4 children in Ghaziabad
    • Face it: Anyone paying attention knows why Devin Booker was benched in Game 3 of NBA Finals

    Follow Us

    Facebook Youtube Twitter Line
    • T & C Legal Disclaimer
    • Privacy Policy
    • Subscriber Agreement and Terms of Use
    • Refund Cancellation Policy
    • FAQ

    © 2021 Press24 News English - Kotgari News & Media Network Press24 News.Traffic Bot

    • Login
    • Sign Up
    • Cart
    No Result
    View All Result
    • Home
    • Top News
    • Politics
    • National
    • Business
    • World
    • Entertainment
    • Lifestyle
      • Fashion
      • Health
      • Food
      • Travel
    • Sports News
    • Tech
    • Science
    • Hindi News
    • Premium Access
    • Opinion

    © 2021 Press24 News English - Kotgari News & Media Network Press24 News.Traffic Bot

    Welcome Back!

    Sign In with Google
    OR

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Sign Up with Google
    OR

    Fill the forms below to register

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
    Are you sure want to unlock this post?
    Unlock left : 0
    Are you sure want to cancel subscription?