Cryptocurrency market last week: Virtual currency trading volume fell 40%

After the shock slump in Bitcoin, investors seem to have gradually lost interest in digital currencies. In addition, the virtual currency market was further impacted last week by the ban on virtual currency mining in Anhui Province, China.

Cryptocurrency trading volume down 40%

Trading volume on the largest exchanges, including Coinbase, Kraken, Binance and Bitstamp, fell more than 40% in June after the crashes of Bitcoin and other cryptocurrencies.

In June, Bitcoin temporarily fell to $ 28,908. At the same time, the daily transaction value reached 138.2 Billion USD on June 22nd, 42.3% less than the peak day in May.

However, Reuters cited the report that China was the main catalyst for the decline in trade volume. Beijing’s tightening of measures to combat the cryptocurrency industry had a bigger impact than ever. It directly affects the price of bitcoin as well as bitcoin mining operations that mainly take place in this country.

Teddy Vallee, Chief Investment Officer at Pervalle Global, said, “China’s aggressive cryptocurrency activity has created a lot of fear in the market. The crypto ecosystem was attacked directly. That has consequences. ”Vallee emphasized that he had not seen large inflows of money into the exchanges, with a lower number of new wallet openings.

In late June, China passed a policy banning cryptocurrency trading just as it was about to introduce its own currency. At the same time, China has also eliminated a number of cryptocurrency mining pools.

China accounts for 50-60% of all cryptocurrencies mined worldwide. Gabor Gurbacs, Director of Digital Asset Strategy at VanEck, says that when miners leave China, they don’t trade as much as the bitcoins they mined.

Despite the significant drop in trading volume, however, it is still significantly higher than last year. The trading volume in June is still one of the 5 worst trading months on record, even if it has declined sharply compared to May.

Another Chinese province has banned cryptocurrency mining

After Sichuan, Anhui Province announced a ban on cryptocurrency mining and said the move would help alleviate energy shortages over the next three years.

Anhui Provincial Government will shut down all virtual currency mining projects to reduce energy consumption as this place faces severe power shortages.

At the end of May 2021, the State Council of China committed to strictly control mining and trading in cryptocurrencies due to possible financial risks.

Anhui doesn’t have many virtual currency mining companies, but this move shows an attempt to tighten control over virtual currency mining activities in China.

Before that, the big Bitcoin mining centers like Sichuan, Inner Mongolia and Xinjiang. Before the ban was passed, China accounted for 70% of the Bitcoin network’s global hashrate.

The ban by many provincial governments has shut down more than 90% of bitcoin mining pools in China, forcing virtual currency miners to relocate their operations overseas.

Bitcoin drops to nearly 31,000 U.S. dollar, Ethereum fell 13%, Dogecoin “evaporated” 24%

The red color covers the entire virtual currency market. On the morning of July 17, Bitcoin price fell to nearly 31,000 U.S. dollar, 7% less than 1 week ago. Meanwhile, Ethereum is down nearly 13%, Ripple is down 9% and Dogecoin is down 23%.

Market capitalization also dropped sharply from 1,400 Billion USD down 1.243 Billion USDwhat a decrease of more than 150 billion VND. corresponds to USD in last 7 days.

Price movements of the top 10 cryptocurrencies

The week’s biggest winners and losers

Source: CoinMarketCap

Vu Hao

FILI