Cryptocurrency trading volumes tumbled more than 40% in June, amid a regulatory crackdown in China and lower price volatility. Bitcoin stocks were down.
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Spot trading volumes fell 42.7% to $2.7 trillion, with derivative volumes down 40.7% to $3.2 trillion, according to London-based researcher CryptoCompare. Price volatility also weakened, which in turn depressed trading volumes as well.
Bitcoin, the largest cryptocurrency, fell more than 6% in June. It hit a monthly low of $28,908, the lowest level in six months, as Chinese authorities remain relentless in tightening bitcoin trading and mining restrictions.
Most recently, Chinese authorities shut down mining activity and instructed banks to stay away from cryptocurrencies. As a result, the price of cryptocurrencies has plummeted, wiping out hundreds of millions of dollars in value in the digital currency markets.
“Markets experienced mixed news — headwinds continued as China persisted with its crackdown on Bitcoin mining, while positive news arose as El Salvador became the first country to formally adopt Bitcoin as legal tender,” the report said.
Privately held Binance, the world’s largest crypto exchange, saw spot trading volumes fall 56% in June to $668 billion.
Coinbase (COIN), the largest U.S.-based cryptocurrency exchange, had $77.4 billion in spot trading volume, down 61.5%.
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Bitcoin Stocks
COIN stock closed down 2.45% at 247.67 on the stock market today. Shares have fallen more than 40% from their all-time high of 429.54, notched intraday on its IPO on April 14.
MarketSmith chart analysis shows Coinbase’s relative strength line is trending lower. Its RS Rating is just 6 out of a possible 99. But its EPS Rating is 74, as it has strung together three straight quarters of earnings increases.
Among other Bitcoin stocks, Marathon Digital (MARA) dropped 1.2%, dipping just below its 50-day moving average.
Riot Blockchain (RIOT) lost 4.4%, and MicroStrategy (MSTR) slumped 6.44%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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