Bitcoin trading volumes have dropped 50% since the beginning of the month compared to record levels in May, CoinDesk notes.
The average dollar turnover of bitcoins on exchanges in the first nine days of June amounted to $ 33.08 billion. In May, the value reached $ 67 billion. Activity in the cryptocurrency market now remains the lowest since November last year.
“Traders have clearly lost interest in bitcoin amid market uncertainty,” analyst firm Arcane Research wrote in a new report.
The decline in trading volumes negatively affects cryptocurrency exchanges, a significant part of whose income comes from commissions. Financial consulting firm Raymond James on Wednesday recommended that investors sell Coinbase shares, which, according to CNBC, was the first negative rating for a leading US cryptocurrency exchange. Analysts at Raymond James expect COIN to outperform the S&P 500 or in its sector over a 6 to 12 month span.
“The big decline in May and Elon Musk’s tweets really hit trading activity, pushing it to new highs,” said John Todaro, vice president of Needham & Company.
Since trading volumes are calculated in dollars, the depreciation in itself has become an important factor in the overall negative dynamics, in addition to the decline in traders’ activity. Todaro expects the situation to improve in the near future, and June may still catch up on average with March and April.
In addition, crypto exchange traffic reached a record 638.2 million visits in May, an increase of 20% over April. The most visited exchanges were Binance and Coinbase with 39.4% and 19.1% in total volume, respectively.
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