Markets
ValueZone CEO Discusses Impact of Bitcoin Halving on Declining Crypto Trading Volume
Value area
London, England, June 8, 2024 (GLOBE NEWSWIRE) —
THE cryptocurrency market is experiencing a significant slowdown in trading activity, with a 20% drop reported in May following the recent Bitcoin halving event. Adam Carl Waldman, CEO of ValueZone, a leading cryptocurrency trading platform, sheds light on current market dynamics and their implications for traders.
Overview of the current market slowdown:
According to a recent report from CCData, May saw a substantial decline in spot and derivatives trading volumes on centralized exchanges, totaling $5.27 trillion. This decline is largely attributed to the market response to the Bitcoin halving event that took place in March, which traditionally triggers a slowdown in trading activity as the market adjusts to the reduced supply of Bitcoin.
“The post-halving period typically sees a reevaluation of asset strategies as traders adapt to the new supply dynamics,” says Waldman. “This year the impact has been more pronounced, compounded by a broader economic slowdown expected over the summer months.”
Performance on the main stock exchanges:
Binance maintained its lead in spot market trading volume in May, although it, along with other major exchanges like Bybit, OKX, Coinbase and Gate.io, saw notable declines compared to April. Since the start of the year, Binance has increased its dominant market share to 34.6%, reflecting a strategic adaptation to market conditions.
Conversely, exchanges such as Upbit, OKX, and MEXC Global have seen significant declines in market share, illustrating a changing landscape within the cryptocurrency trading industry.
Resilience of the derivatives market:
Despite the general slowdown, the derivatives market remains robust, now accounting for 70.1% of the entire crypto market. This segment saw a less severe 19.4% decline in derivatives volumes, reflecting continued interest in more sophisticated trading instruments.
“This resilience of the derivatives market highlights a maturation crypto market where seasoned traders leverage advanced financial instruments to hedge and trade in various market conditions,” Waldman said.
Future outlook and opportunities:
Despite the current lull, there are signs of an underlying bullish current among traders, as evidenced by rising funding rates and an increase in Ethereum options volumes driven by speculation around US ETH ETFs. These indicators suggest that even though the market is limited, traders are preparing for potential opportunities that could arise from changing regulations and market developments.
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ValueZone Strategic Initiatives:
In response to these market conditions, Value area is focused on improving its platform to better serve its users during these fluctuating times. This involves investing in educational resources to help traders understand market dynamics and introducing more robust tools for risk management and strategy development.
The current market scenario presents both challenges and opportunities. As the industry deals with these fluctuations, Value area remains committed to providing its users with the information, tools and support needed to thrive in a complex crypto trading environment.
For more information on how to get started with ValueZone and make the most of the crypto summer, visit https://valuezone.ai or use media contacts.
Media Contact Information
Contact name: Siodina Edgar
Contact email: siodinaedgar@valuezone.ai
Company Name: Wealth Investment Blockchain Company Ltd.
City/Country: Essex, United Kingdom
Website: https://valuezone.ai
Disclaimer: The information provided in this press release does not constitute an investment solicitation nor is it intended to constitute investment advice, financial advice or trading advice. It is strongly recommended that you perform due diligence, including consulting a professional financial advisor, before investing in or trading cryptocurrencies and securities.
CONTACT: Siodina Edgar Crypto Technology Limited siodinaedgar at valuezone.ai
