Crypto spot trading volumes down by 31,5% in July to new record low for the year

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Dec 11, 2020
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Spot trading volumes on the crypto market hit the lowest levels for the year, shrinking by 31,5% in July to roughly 1.9 trillion USD despite several positive developments for the industry including speculations that Amazon.com Inc. might be planning to adopt crypto payments in the near future and a certain level of institutional endorsement for crypto assets in Germany.

The data is published in the latest report of CryptoCompare, a private global, crypto market research company and reflects the mounting regulatory concerns about the crypto industry in general.

Earlier this year the Chinese authorities ordered all banks and payments providers in the country to stop supporting transactions with digital coins – a move which followed a complete ban on Bitcoin mining in Sichuan province.

“Exchanges, such as Binance, have seen increased scrutiny from regulators across the globe. Similarly, stable coins have received criticism from regulators regarding potential risks to consumers and the global financial system,” CryptoCompare said in its report.

Binance remains the largest spot exchange by volume, trading crypto assets worth some 455 billion USD in July, followed by OKEx, Huobi Global, BeQuant, Coinbase and FTX trading 96.8 billion USD, 92.7 billion USD, 72.1 billion USD, 53.8 billion USD and 35.2 billion USD respectively.

The crypto derivative trading volumes also shrunk by 22,6% in July to about 2.5 trillion USD, which left the derivatives market with some 56,9% of the total crypto market compared to 52,9% in June.

Meanwhile, in another development certain institutional funds with fixed investment rules in Germany are now allowed to put up to 20% of their holdings in crypto currencies. The funds called Spezialfonds, which currently manage about 1.8 trillion euros, however can only be accessed by institutional investors, such as pension companies and insurers.
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Frankly, after the crackdown in China that shrinking should have been expected.