[ad_1]
Bitcoin transaction volumes have fallen 47% this month from a record high in May, in a grim turn of events for the digital asset industry as cryptocurrency prices retreat.
A daily average of $ 34.8 billion worth of bitcoin changed hands in the first eight days of June, compared to the unprecedented $ 67 billion recorded last month, based on data from CoinDesk Research. The June average is so far the lowest of any month since December.
Traders have certainly lost their appetite for bitcoin in this uncertain market environment, Norwegian cryptocurrency analysis firm Arcane Research wrote in a report on Tuesday.
Declining transaction volumes could have implications for cryptocurrency exchanges, which derive revenue from transaction processing. The share price of the major US exchange Coinbases has fallen 31% since its listing on April 14.
The big price collapse in May and Elon Musks’ tweets really boosted business activity, making May a high-paying month, said John Todaro, vice president of crypto-asset and blockchain research at Needham & Company, referring to the CEO of Tesla.
Since the trading volume is shown in dollars rather than the number of BTCs, the decline in prices in recent months has in itself been a contributing factor, in addition to declining interest from traders.
Todaro said the cryptocurrency would likely pick up and June may end up aligning with previous months like March and April in terms of business activity.
On Wednesday, the price of bitcoin rose the most in two weeks. The cryptocurrency was changing hands at nearly $ 36,500 at the time of publication, compared to $ 31,000 when it was trading on Tuesday night.
[ad_2]
picture credit