Exchanges experiencing record surge amid market volatility

  • The recent weekend turned out to be a bleak market wherein majority of the cryptocurrencies experienced severe price decline which has resulted in a fear sentiment among investors.

Exchanges experience record surge in outflows

Although the market had a weak price over the month of June still various exchanges experienced record surge in outflows during this period.

Especially the withdrawal rate of Bitcoin achieved a significant high in June wherein the total outflow averaged around 151K BTC. Data shows that the majority of receivers of this outflow were various whale and shrimp accounts in the market.

The transaction tax in India dulled the market sentiment resulting in the majority of exchanges experiencing a downfall in their cryptocurrency volumes. After the 1% tax deduction rule implemented from July 1 for digital currencies was levied in India, the majority of the exchanges witnessed a downfall in their trading volumes.

Exchanges are also witnessing a severe decline in its running cash flow which has resulted in a price decline of various commodities. Another major factor behind this could be the tax being levied on digital assets across various regions.

According to analysts various high value investors and traders have significantly decreased their buying and selling processes. Majority of them are planning to move towards exchanges which are decentralized and provide them with a better freedom while trading.

However the market is experiencing an uncertainty sentiment with Bitcoin moving among the $18,000 to $21,000 price range. The price of Bitcoin is being affected due to various macroeconomic factors which in turn significantly affect the whole cryptocurrency industry in whole. Traders however hope for a bullish trend for Bitcoin in the upcoming days however they are still uncertain about how the future prices will play out.

Disclaimer: The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product. It is only intended to provide education about the financial industry. Please do your own research.

Author - Govind R.