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Crypto market sinks by $300B while Bitcoin transactions near 3-year low

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The number of daily transactions on the Bitcoin network has dropped to 217,000. The last time such a low level was observed on August 31, 2018. Thus, the cryptocurrency market lost $ 300 billion in a week.

The decrease in user activity is due to the prolonged correction of Bitcoin and the unsuccessful ride of the bulls raised the rate above $ 40 thousand. The recovery hampered by a number of factors, from increased pressure on the market from the regulators of the US and China, to skeptical tweets by Elon Musk.

The decline in transaction activity is directly proportional to the fall in the Bitcoin exchange rate after last year’s records, when the coin rose to $ 20,000 on some major exchanges. The two-year minimum fell on February 26, when only 180 thousand transactions were made, on March 5 – just over 197 thousand.

In addition to the number of transactions, the number of new addresses decreased to 372 thousand, and the average number of active addresses per week to 940 thousand. Due to the collapse in prices, daily sales volumes decreased by 55%, from $ 17.3 billion to $ 7.7 billion.

The only positive moment is the decrease in the average commission by 87%, from $ 53 to $ 7.

“Whales” continue to accumulate

Despite record low fees, Bitcoin holders are in no hurry to use their coins: the number of confirmed BTC transactions has reached a two-year low.

The largest holders of the main cryptocurrency continue to accumulate digital coins, and the interest of “whales” in Bitcoin is growing. The number of digital coins on crypto exchanges continues to decline after the drop in quotations on May 19.

The largest owners of Ethereum also continue to accumulate altcoins, according to Santiment. This trend has not changed since October 2020. And Ethereum address activity has continued to decline since the spike in mid-May. At the same time, the negative social sentiment of Ethereum dropped to the level of October 2020. The number of Ethereum on the exchange has remained practically unchanged since the beginning of June, according to Santiment.

Exchanges canceled positions for $ 1 billion

The crypto market has experienced another shock drop over the past day.

The Bitcoin rate fell by about 10% to $ 33,000. Moreover, the coin fell in price to $ 32,000 on some trading floors, but then it was able to rebound. The capitalization of BTC has decreased to $ 618.8 billion. The Bitcoin dominance index is 39.5%.

Together with Bitcoin, almost all altcoins have been updated. Ether (ETH) and Binance Coin (BNB) fell to $ 2,500 and $ 350, respectively.

Market capitalization fell on Tuesday, June 8, to $ 1.5 trillion.

Against the background of such a large-scale rollback, crypto exchanges forcibly canceled traders’ positions for an amount exceeding $ 1 billion.

According to the ByBt service, in 24 hours trading platforms liquidated the positions of 162,000 players. For example, one of the traders on an Ethereum deal lost more than $ 7 million.

Bitcoin deals traditionally accounted for the largest liquidation, it amounted to $ 480 million. Ether and XRP are next in the list of leaders, exchanges canceled positions with these altcoins for $ 276 million and $ 70 million, respectively.