Coinbase transaction volume down 70%, signaling prolonged crypto winter

2023-8-7 20:58

While Bitcoin price flourished this year, gaining 74% since January, the broad cryptocurrency market remains deteriorated compared to 2022. Coinbase published its second-quarter earnings on Thursday, revealing plunged volumes.

The exchange had its consumer and institutional transaction volumes dipping by 70% and 54%, respectively, YoY during the quarter. Coinbase stated that decreased overall crypto market capitalization contributed to its unwelcoming numbers.

Consumer transaction volume on Coinbase is down 70% from last year.

— I am Matt (@3JAlpha) August 6, 2023

Crypto market cap hovered at $2.26 trillion on April 2022. Nonetheless, downside price actions in most digital tokens pinned the figure below $1 trillion early this year. The metric swayed at $1.16 trillion at press time.

Also, most cryptocurrencies have exhibited low volatility, flashing minor fluctuations. That indicates fewer profitable opportunities for dip buyers.

Challenging environment for crypto

The crypto market resorted to declines after the Federal Reserve executed rate hikes. Leading firms in the digital asset sector, 3AC, Voyager Digital, and lender Celsius, fell before the exchange FTX closed last year by destroying around $2 trillion in cryptocurrencies.

Coinbase has seen increased challenges that forced the company to launch various layoffs. Moreover, the latest regulation wave dented the exchange’s undertakings. The United States Securities & Exchange Commission sued Coinbase and Binance in June, citing illegal operations.

While Coinbase CEO promised to defeat the regulator in court, controversy remains. Regulation remains a challenge in cryptocurrency business.

As seen here, digital assets enthusiasts believe the market is still staring at crypto winter. Moreover, the market seems poised for more bearishness.

Trader predicts #BTC dump due to oil market rally, inflation fears, and potential #ETF regulatory challenges.

Analyst #Pentoshi notes crypto market capital exit, #BTC halving in April 2024, anticipating bearish outlook. Correlation might trigger sharp #BTC dump. 📉 pic.twitter.com/hVZxYSbzH2

— Mia Brown (@MissMiaNFTs) August 6, 2023

Analysts forecast continued bearishness for the cryptocurrency market, predicting Bitcoin dumping due to possible ETF regulatory challenges, inflation worries, and oil market rallies.

The post Coinbase transaction volume down 70%, signaling prolonged crypto winter appeared first on Invezz.

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