Crypto Exchanges See Big Drop in Volumes as Bitcoin Volatility Approaches 2020 Low
Exchange volumes are at a rock bottom as traders turn away from sluggish bitcoin markets.
- Trading volumes on “top tier” spot exchanges fell by 36% in June, according to a report from London-based data provider CryptoCompare.
- Similarly, crypto derivatives exchanges experienced a 35.7% drop in volume to $393 billion – the lowest monthly volumes since the start of 2020.
- Bitcoin’s ATR range – a volatility metric – has nearly halved since the start of June. At press time, it was just 20 points above its 2020 low.
- CryptoCompare CEO Charles Hayter said June’s spot prices had been flat compared to previous months and the lack of price volatility likely explained the drop in trade volumes.
- In theory, exchange volumes could continue tracking downwards should volatility remain at low levels, he said.
- Volumes across the entire crypto spot market – both “top tier” and “lower tier” exchanges – fell nearly 50% in June, meaning the market share for crypto derivatives has increased 5% to 37%.
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