U.S. Crypto Exchanges’ Activity, Liquidity Plummet
The cryptocurrency market had a solid start to 2023, with Bitcoin reaching a high of $31,165 on April 14. However, things have cooled off dramatically in the later half of the second quarter due to Securities and Exchange Commission (SEC) enforcement proceedings and concerns about the health of the broader financial markets.
On Monday, Robinhood, a prominent U.S. brokerage firm that now provides access to cryptocurrencies, released its May Operating Data report, which revealed that the volume of crypto trading on the site plummeted by 43% in May compared to April.
This decrease in overall volume occurred despite the fact that volume for both stock and options contracts climbed by 27% and 29%, respectively, since April.
Year on year, the disparity was even more pronounced, with total volume traded in May 2023 being $2.1 billion, down from $6.6 billion in May 2022, which also occurred to be the month Terra/Luna collapsed, unleashing the year’s first contagion outbreak.
(With inputs from Shikha Singh)
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