It’s that time of year again, when the cryptocurrency summer slumps are really starting to affect the market. In the month of June alone according to CryptoCompare, the instability in the market as well as lower prices, have caused over a 40% drop in Binance, Coinbase, Bitstamp and Kraken; some of the largest exchanges of trading volumes in the world when it comes to Cryptocurrency.
Consequently, the price of bitcoin at the end of the month of June was down 6% and has hit a monthly low of $28,908. Compared to May’s intra-month high, the daily volume maximum of 138.2 billion was reportedly down more than 42% on June 22nd. Who is to blame you ask?
Reporters believe China has a huge part to play in cryptocurrency summer slumps. For years China has been attempting to crack down on the industry and it looks like they have finally succussed. Most experts still see a future upwards trend for Bitcoin and other cryptocurrencies. Pervalle Global’s chief investment officer Teddy Vallee states:
“The Chinese crackdown has caused a lot of fear, which is showing up in markets, 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.”
One would think that this is just another episode of the market experiencing a slump. However, given China’s pivotal role here, there’s are no signs of this major market player backing down anytime soon. The question now remains: will stakeholders continue to invest their chips in the cryptocurrency market?