Cryptocurrency Trading Volumes Slump 40% in June, Data Shows

Reuters
By Reuters
July 12, 2021Businessshare
Cryptocurrency Trading Volumes Slump 40% in June, Data Shows
View of a Bitcoin sign on a Bitcoin ATM, after its inauguration by Athena Bitcoin Inc. at a shopping mall in San Salvador, on June 24, 2021. (Marvin Recinos/AFP via Getty Images)

LONDON—Trading volumes at major cryptocurrency exchanges fell by more than 40 percent in June, research showed on Monday, with a regulatory crackdown in China and lower volatility among the factors depressing activity.

Spot trading volumes fell 42.7 percent to $2.7 trillion, with derivative volumes down 40.7 percent to $3.2 trillion, London-based researcher CryptoCompare’s data showed.

“Headwinds continued as China persisted with its crackdown on bitcoin mining,” CryptoCompare said. “As a result of both lower prices and volatility, spot volumes decreased.”

Bitcoin, the largest cryptocurrency, fell more than 6 percent last month, touching its lowest since January, as authorities in China tightened restrictions launched a month earlier on bitcoin trading and mining.

It had tumbled 35 percent in May, with its losses sparked by Beijing’s moves to rein in the fast-growing sector. Crypto trading volumes tend to spike during periods of extreme price swings.

Major cryptocurrency exchange Binance, which has faced scrutiny from regulators across the world, retained its position as biggest platform by spot trading volume, CryptoCompare said. Still, volumes at Binance fell 56 percent in June to $668 billion.

By Tom Wilson. Editing by Jane Merriman

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