The flagship cryptocurrency, Bitcoin (BTC), has experienced a decrease of approximately 6% so far this month as we cross the midpoint of June. However, a halt in the US Federal Reserve’s base rate hikes has brought about a slight uptick in the last 24 hours.
BTC/USDT ended Thursday with a modest 1.9% gain, reaching US$25,600, after rebounding from a three-month nadir of US$24,800.
Come Friday morning, the pair experienced a minor dip again, being traded at US$25,555 at the time of reporting.
An array of external factors, chiefly a wave of regulatory crackdowns on the two primary fiat-to-crypto platforms Binance and Coinbase, have stirred worry among cryptocurrency investors.
As a result, concerns about liquidity have begun to surface as traders evaluate the risk of holding onto long positions in the unpredictable cryptocurrency market.
Data provided by Kaiko and shared by CoinDesk reveals that average daily trading volumes across the entire cryptocurrency spectrum (stablecoins excluded) have declined by over 40% in Q2 2023 compared to Q1, with Bitcoin taking the largest hit.
Highlighting these market fears, data from Blockchain.com shows a relatively steady decrease in daily Bitcoin transactions throughout the second quarter.
Should market liquidity continue to contract, investors can anticipate increased volatility.
Ethereum (ETH), trading at US$1,672, has experienced a decline of over 10% month to date, a loss outstripped by the wider altcoin market.
Polygon (MATIC), Polkadot (DOT), Solana (SOL), and Cardano (ADA) have all plunged deeply into the double-digit loss region.
Taking a broader look at the cryptocurrency market, the total global market capitalisation currently sits at US$1.04 trillion, reflecting a dip of around 8% so far in June.
