The digital currency trade tool provider TradeBlock in a recent report has stated that Bitcoin‘s trading volume has dropped to a two-year low in March. This decrease in the trading numbers is due to the global regulatory crackdown led by the US Securities and Exchange Commission. This regulatory scrutiny has created concerns about the oversight and acceptance of cryptocurrency as payments, as the digital currency was once a highly valuable virtual asset.
Bitcoin volume in the top five digital currency exchanges hits the lowest at $2.14 billion last month, since April 2017, when the volume was just $845.7 million. It has dropped more than 70% since hitting the highest peak of $20,000 in December 2017.
Earlier this week, due to a major order by an anonymous buyer, Bitcoin recovered and showed a significant rise in its price. It hit a five-month high of $5,345 on the Bitstamp platform. The price later got stabilized at around $4,800 mark showing an increase of about 15%.
In its research, TradebBlock said, as Bitcoin trading volumes fell, digital asset exchanges started increasing the volume of assets listed. It also cited Coinbase, which has historically mentioned fewer assets than its peers and took on two new currencies which are Ripple and Stellar Lumens, over the last few months. TradeBlock’s data showed that in March the Coinbase’s trading volume was at a two-year’s low of $1.6 billion.
TradeBlock said, “An increase in trading fees is in line with expectations that exchanges are looking to protect revenues, amidst continually dampened trading volumes”.
See also: State Bank promises issuance of digital currency by 2025