Cryptos are in a summer-fall as they navigate a two-month correction period after a chain of negative stories.
CryptoCompareTrading provides crypto market data. And, according to it, volumes at the most prominent exchanges fell more than 40% in June. That includes Binance, Coinbase, Kraken, and Bitstamp. It cited lower volatility and prices as the reason for the decline.
According to the report, bitcoin`s price hit a monthly low of $28,909 and ended the month below 6% in June. A daily volume maximum of $138.3 billion on June 22 was down 42.4% in May.
According to Reuters, the report pointed to China as a significant catalyst reported earlier this Monday. China’s effort to crack down on the industry had a more substantial impact than ever before. However, experts and investors in the crypto ecosystem still see a positive trend in a long-term perspective for bitcoin and some other cryptocurrencies.
Chief investment officer at Pervalle Global, Teddy Vallee, said that the Chinese crackdown created many fears that affected markets. The digital asset ecosystem experienced changes, so it’s currently fighting.
Vallee also said that he still can not see large flows, funding rates still show negative, and the number of new wallets remains lower.
Factors Behind the Crypto Slowdown
At the end of June, China ordered to stop crypto mining from launching its state-backed digital currency. That interrupted mining operations in various provinces that hosted 55% to 65% of Bitcoin’s mining power.
Director of digital assets strategy at VanEck, Gabor Gurbacs, noted that they could not transact as much with the bitcoin after China left.
Research analyst for crypto sentiment analytics platform Trade the Chain, Nick Mancini, said that sentiment fell once these stories permeated through the market. He added that this resulted in the trading volume for bitcoin that dropped since its peak. It decreased by 35% from its June average.