Cryptocurrency Markets Remained Bearish in June After Huge Sell-off in May: Report

Cryptocurrency markets remained fairly bearish in June 2022 after May’s broad market sell off, the team at Kraken notes in a report.

All crypto sectors “reported negative returns month-over-month; even the best performers posted losses exceeding -18%.” Meme and metaverse coins “performed only slightly better than ETH (-47%), privacy coins (-43%) and BTC (-40%).”

Kraken asks in its recent update, “Have the tides turned or will the uphill battle continue?” In Kraken Intelligence’s latest Market Outlook Report, Uphill Battle, the team “recaps June’s market action and looks ahead.”

Historically speaking, June has tended “to deliver positive returns for BTC.”

However, the leading cryptocurrency’s price “fell by -38% this June to a 10-month low.”

Meanwhile, ETH’s price “fell by -46% in June, as annualized volatility peaked to 122%, an 8-month high.” Whale activity in BTC and ETH was “relatively quiet as both the number of whales and their holdings decreased slightly.”

DeFi’s top tokens “reported major losses ranging between -5% and -47% month-over-month, as AAVE (-47%) and CRV (-47%) led to the downside.” NFT market activity “slowed down over the same period: average daily users, average transactions and average volumes fell by -4.8%, -0.1% and -68.7%, respectively.”

Red candles “piled up across most cryptoassets in June amid macroeconomic uncertainty and industry challenges.”

Early in the month, the World Bank “slashed its global growth forecast to 2.9% against a backdrop of rising inflation, falling equity markets and sinking crypto prices.”

Crypto lender Celsius “paused all withdrawals, swaps and transfers between accounts, citing ‘extreme market conditions.’”

Three Arrows Capital, a Singapore-based hedge fund, was “subject to $400M in liquidations triggered by margin calls in the wake of cryptoassets’ steep decline.”

In the U.S., crypto “made headlines as senators released the Responsible Innovation Act, which seeks to integrate digital assets into the traditional financial system and increase regulation for the crypto industry.”

However, the news is “not all bleak,” according to Kraken. Ethereum inched closer still “to the much anticipated Merge as the Ropsten testnet successfully transitioned from proof-of-work to proof-of-stake.”

To view the complete report from Kraken, check here.

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