Source: Sharecast
Trading in crypto assets on major exchanges including Coinbase, Kraken, Binance and Bitstamp fell more than 40% in June, according to data from cryptocurrency market data provider CryptoCompare, which cites lower prices and lower volatility as the reasons for the fall.
In June, the price of bitcoin hit a monthly low of $ 28,908, according to the report, and ended the month down 6%. The daily high of $ 138.2bn on June 22 was 42.3% lower than the month-to-month high in May.
The report singles out China as the main catalyst, according to 'Reuters', which reported it on Monday. The latest of many efforts by China over the years to crack down on the sector has had a bigger impact than ever. However, investors and experts in the cryptocurrency ecosystem continue to see a positive long-term trend for bitcoin and other cryptocurrencies.
"The Chinese repression has caused a lot of fear, which is manifesting itself in the markets," said Teddy Vallee, director of investment at Pervalle Global, according to CNBC. "The digital asset ecosystem received a punch in the face, so it is currently on the ropes in the face of the fight in the center of the ring. Normally, when big sales occur, the participants are quite scared and withdraw their chips."
Vallee added that he is not yet seeing large returns from exchanges, funding rates remain negative, and the number of new portfolios is lower.
STOCKPILING AS A BULLISH SIGN
In fact, the number of bitcoins on trading platforms has fallen steadily since the end of May, with approximately 2,000 bitcoins (worth about $ 66 million at current prices) leaving exchanges daily, CoinTelegraph indicates.
Glassnode's July 12 Week On-Chain report points out that bitcoin reserves in centralized exchanges have fallen again to levels not seen since April, the month in which the creation of Satoshi Nakamoto reached its all-time high of approximately $ 65,000.
The researchers note that during the bull run that led to this peak, the relentless depletion of currency reserves in 'crypto exchanges' was a key issue. Glassnode concludes that much of these assets went to the Grayscale Trust or was accumulated by institutions, driving "a persistent net exit from exchanges."
However, when bitcoin prices plummeted in May, this trend was reversed as the coins were sent to exchanges for settlement. Now, the net volume of transfers has reentered negative territory as outflows increase.
The market now awaits the liquidation of the shares of the Grayscale fund as one of the events that can move the market, in the next few days 40,000 bitcoins will be put into circulation.
Translated by Caoimhe Toman
