According to CryptoCompare, major global cryptocurrency market data provider, spot and derivatives volumes have declined across exchanges, reaching the lowest since January 2021.
The month of June alone saw spot volumes drop nearly 28% to $1.41 trillion as Bitcoin tumbled, the lowest since December 2020, according to data compiled by CryptoCompare.
Meantime, derivatives trading volumes dropped by 7% in June, reaching the lowest since July their lowest value since July 2021.
To market-watchers, the trend makes sense considering declines in Bitcoin and Ether, both of which have fallen over 70% from last year´s all-time highs.
Without going any further, Bitcoin tumbled 15% on June 18 to $17,599, the lowest price since late 2020, reflecting investors turning cautious.
Generally speaking, cryptocurrencies have, along with other riskier assets, had a hard time this year amid a higher-rate environment, whereby central banks around the world are trying to tamp down red-hot inflation.