Crypto Trade Volume Plunged 43% in June Following China’s Crackdown on Industry | Currency News | Financial and business news

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Falling prices and volatility caused crypto trading volumes to drop 42.7% in June, according to a report from CryptoCompare. Binance remained the number one exchange in volume, falling 56% to $ 668 billion. The Bitcoin Volatility Index – a VIX-like implied volatility measure – fell 42% from its May highs to June lows. Sign up for our daily newsletter, 10 things before the opening bell here.

Falling prices and volatility caused cryptocurrency trading volumes to drop 42.7% in June as China ousted miners from the country and widely cracked down on crypto use, according to a CryptoCompare report .

The analyst firm found that transaction volumes plunged to $ 2.7 trillion in a widespread slowdown that affected all major crypto exchanges. The highest daily volume in June was down 42.3% from the equivalent peak in May.

The widespread nature of the trading slowdown means that crypto exchanges have maintained their relative size. Binance remained the number one exchange by volume, falling 56% to $ 668 billion, although trade restrictions introduced in the UK towards the end of June could undermine its position. Huobi Global, the second largest listed company in Hong Kong, had a volume of $ 162 billion in June, down 40%.

In June, bitcoin hit a low of $ 28,908, driven by the Chinese government’s growing campaign to curb crypto mining. The drop in prices has been accompanied by a decrease in volatility, driving down trading volumes, CryptoCompare said in its report. China’s restrictions on space included shutting down mining operations and banning financial companies from offering crypto services to clients and clients.

The Bitcoin Volatility Index – a VIX-like implied volatility measure – fell 42% from its May highs to June lows.

Tether, the largest stablecoin, also remained the primary source of liquidity for the crypto market in June, accounting for over 57% of crypto transactions. The second largest source of liquidity was the US dollar, followed by the Japanese yen.

CryptoCompare’s results were first reported by Reuters.

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