Commercial volume for crypto system products reached 2-year low

Commercial volume for crypto system products reached 2-year low

The trading volume for crypto system products reached the lowest level since October 2020 last week, since the drains in August have been in August, according to CoinShares.

These offers reached a trade volume of $ 901 million last week, which is well below the weekly average since the beginning of the year, which was $ 2.4 billion on August 8th.

The investment products for digital assets also recorded net drains of $ 27 million in the past week, which was somewhat higher than the $ 17 million in the previous week, as the data show.

"While the story indicates that this is partly due to seasonal effects, we believe that this also underlines the lasting apathy after the recent price declines," said James Butterfill, Head of Research at Coinshares, in the Monday report of the crypto investment company.

Bitcoin and Ether were traded on Monday at 11:00 a.m. ET at around $ 20,170 and $ 1,510 - each fell by about 7 % in the last seven days.

The negative net inflows of the past week were driven from Bitcoin products by drains of $ 29 million. Investment products that concentrate on the empty sale of Bitcoin recorded minimal tributaries of around $ 1 million.

"Both imply a minimal but persistent caution of investors, which in our opinion can be attributed to the continued aggressive rhetoric of the US Federal Reserve," added Butterfill.

FED chairman Jerome Powell warned that sustainable price stability was still a long way off. According to Powell's comments, some analysts said that they predict a further rate increase of 75 basis points in September.

The drains of the past week marked the third week in a row with negative tributaries for crypto system products, which were $ 46 million during this period. This trend comes to a total of $ 474 million in crypto system products in crypto system products-the largest monthly sum in 2022.

The money inflow into such offers in the past month was partly due to a reversal for ether products that recorded tributaries of $ 138 million in July compared to combined negative net inflows of around $ 450 million in the previous six months.

Ether-focused products last week recorded minor drains of around $ 1 million. The number implies that investors prefer to change the blockchain from the ProOF-of-work to the Proof-of-Stake before they increase positions, even though they improve trust due to the upcoming fusion of Ethereum next month, said Butterfill.

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The post-trade volume for crypto system reached the 2-year low and is not financial advice.