ValueZone CEO Discusses Impact of Bitcoin Halving on Crypto Trading Volume Decline

London, England, June 8, 2024 (GLOBE NEWSWIRE) –

He cryptocurrency market is experiencing a significant drop in trading activity, with a reported 20% decline 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 the implications for traders.

Information on the current market slowdown:
According to a recent report by CCData, there was a substantial decline in both spot and derivatives trading volumes on centralized exchanges in May, totaling a drop to $5.27 trillion. This drop 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 new supply dynamics,” explains Waldman. "This year, the impact has been more pronounced, compounded by a broader economic slowdown expected during the summer months."

Performance on major exchanges:
Binance maintained its lead in spot market trading volume in May, although it, along with other major exchanges such as Bybit, OKX, Coinbase, and Gate.io, saw notable declines compared to April. So far this year, Binance has increased its market share dominance to 34.6%, reflecting a strategic adaptation to market conditions.

In contrast, exchanges like Upbit, OKX, and MEXC Global saw significant drops in their market share, illustrating a changing landscape within the cryptocurrency trading sector.

Derivatives market resilience:
Despite the overall slowdown, the derivatives market remains strong and now accounts for 70.1% of the entire crypto market. This segment saw a less severe 19.4% decline in derivatives volumes, indicating sustained interest in more sophisticated trading instruments.

"This resilience in the derivatives market underlines a maturation crypto market where experienced traders leverage advanced financial instruments to hedge and trade in various market conditions," Waldman said.

Future Perspectives and Opportunities:
Despite the current lull, there are signs of a bullish current among traders, as evidenced by rising funding rates and a surge in Ethereum options volumes fueled by speculation around EE's ETH ETFs. These indicators suggest that while the market is range-bound, traders are preparing for potential opportunities that may arise from regulatory developments and market changes.

ValueZone Strategic Initiatives:
In response to these market conditions, Value zone is focusing on improving its platform to better serve its users during these fluctuating periods. This includes investing in educational resources to help traders understand market dynamics and introduce more robust tools for risk management and strategy development.

The current market scenario presents both challenges and opportunities. As the industry navigates through these fluctuations, Value zone remains committed to providing its users with the knowledge, tools and support necessary to thrive in a complex crypto trading atmosphere.

To learn more about how to get started with ValueZone and make the most of the crypto summer, visit https://valuezone.ai or use media contacts.

Media contact details
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 is not an investment solicitation nor is it intended to be investment advice, financial advice or trading advice. It is strongly recommended that you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrencies and securities.

Siodina Edgar

Crypto Technology Limited

siodinaedgar at valuezone.ai