Cryptocurrency update: June trading volumes on major crypto exchanges down 40%

RIYADH: Bitcoin traded lower on Monday, falling 1.05 percent to $33,360 at 4:24 p.m. Riyadh time. Ethereum, the second most traded international cryptocurrency, traded at $2099, a decline of 0.93 percent, according to data from Coindesk.

Below are the main news on cryptocurrency for the day:

A study on Monday showed that trading volumes on major cryptocurrency exchanges fell by more than 40 percent in June, with China’s regulatory crackdown and lower volatility among the factors driving down activity.

Data from a CryptoCompare-based researcher also showed that spot trading volumes fell 42.7 percent to $2.7 trillion, with derivatives volumes down 40.7 percent to $3.2 trillion, Reuters reported. Bitcoin also fell more than 6 percent last month, hitting its lowest level since January, while volumes at cryptocurrency exchange Binance fell 56 percent in June to $668 billion.

El Salvador’s move to accept Bitcoin as legal tender is already facing problems, suggesting that there limitations to the cryptocurrency’s use case as a medium of exchange may emerge, according to a Bloomberg report on Sunday, citing notes by JPMorgan.

The global investment bank pointed to Bitcoin’s illiquid nature, volatility and US. dollar conversion risk as major limitations in its use as legal tender. The research also pointed to problems with the fact that much Bitcoin is tied up in illiquid entities, 90 percent of which have not changed hands in over a year, according to CoinDesk.

Ghana’s proposed central bank digital currency is similar to fiat cash and therefore financial institutions, as well as fintech startups, can still create value based on it, a Bank of Ghana official has said. The deputy governor said that approval for the use of the digital currency will depend on the outcome of the pilot phase, which will start in September, according to Bitcoin News.

The UAE central bank on Monday also announced a three-year plan that includes the introduction of a digital currency. It is part of the central bank’s 2023-2026 strategy, state news agency WAM reported.

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