The trading volume of bitcoin is already on a free fall for this month, having plummeted to around 47% from its record level in May. This has been the result of a successive sequence of bleak events for the digital-asset industry as the prices of the cryptocurrency assets retreat.
As reports claim, an average of around $34.8 billion worth of BTC has already changed hands in the first week of June- which can be compared to the unprecedented height of $67 billion which it charted the previous month. The average in June is so far the lowest it has gone for any month since December.
Bitcoin Currently On A Free-Fall
Arcane Research, a cryptocurrency analysis firm from Norway has stated that most of the traders have quite lost their appetite for Bitcoin in the hugely unpredictable market environment. This drop in its volume for trading does seem to have major implications for most of the cryptocurrency exchanges, which would derive its revenue from its handling of major transactions.
Coinbase, the biggest US exchange, had its stock price gone down by 31% from its previously listed value on the 14th of April.
John Todaro, the CP of Needham & Company, has mentioned that the big price crash that took place last month coupled with the unpredictable tweets of Elon Musk has completely sunk major trading activity- effectively making May a very high-comp month.
Since it is universally known that the volume of transactions is always quoted in USD rather than Bitcoin, the price drop that took place the previous month was quite a contributing factor to the steady drop that has been perpetuating throughout this month. This has simply coiled with a major lack of interest from most traders looking to invest.