Cryptocurrencies are in a summer slump as they navigate a two-month correction period following a string of negative stories. In June the price of Bitcoin hit a monthly low of $28,908, according to the report, and ended the month down 6%. A daily volume maximum of $138.2 billion on June 22 was down 42.3% from the intra-month high in May.
The Chinese crackdown induced a lot of fear among investors, as people have been hesitant in putting their money in the crypto market ever since. “The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips,” said Teddy Vallee, chief investment officer at Pervalle Global. Despite the dramatic drop in trading volume, it’s still much higher than it was last year, Clara Medalie, research lead at crypto market data provider Kaiko.
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