Cryptocurrency trading volumes on major exchanges fell by more than 40% in June aided by the market crash in May and the ongoing crackdown in China. As the Bitcoin slump continued, a daily volume maximum of $138.23bn was traded on 22nd of June, down 42.3% from the intra-month high in May.
According to data from London-based researcher CryptoCompare, spot trading volumes fell to $2.7 trillion with derivatives volumes down to $3.2 trillion (40.7%).
On average, a 51.6% decrease was registered on the 15 largest crypto exchanges in June. This was also seen for BTC and ETH futures open interest, which were down 31.8% and 29.3% respectively.
“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.”
As China’s stringent crackdown to rein in cryptocurrency began in May this year, Bitcoin fell by almost 35% and volatility in the market reached a new peak.
“Aggregate open interest fell for the second month in a row, from a weekly average of $27.8bn in May to $16.4bn in June (40.9% decline). This is adjacent with the continued fall in price in cryptocurrency markets, as Bitcoin saw a 6.0% decline during June.”
In June, Bitcoin somewhat recovered but fell by more than 6%, the lowest since January. While crypto trading volumes tend to increase during price volatility swings, the loss of volumes as registered by Binance in June reached $ 668 billion.
However, despite regulatory checks from countries across the world, Binance still retains the position of being the biggest crypto exchange across the trading world. In terms of volume loss, Binance was followed by Huobi Global with $162bn (down 40.2%) and OKEx with $141bn (down 41.6%).
May Market Crash Wiped Out Nearly a Trillion-Dollar From Crypto Market
Crypto marker registered its biggest crash of 2021 in May that wiped out nearly a trillion dollars from the crypto market cap. The market cap has remained under $1.5 trillion since then with a couple of breakouts in between.
The market sentiment has also been bullish since the May crash, but a majority of market analysts predict another leg of the bull run.