Since the start of this year followed by the crises caused by the ongoing Covid-19 pandemic, the overall price index of Bitcoin remained bearish. This has forced many of the investors to take out their investments from the crypto byproducts wherein the trading volumes have also gone down substantially.
A report being published by CryptoCompare last Thursday indicates that the number of ETPs (i.e. crypto-based exchange-traded products) has immensely gone down considerably in the month of August this year. The report suggests that as per the statistics, it can be seen that the number of ETPs have gone down to an extent of 75% which was recorded to be falling from US$ 186.5 billion to US$ 48 million since August 17th till 15th September, 2020. The effect of the fall had simultaneously impacted the ETP volume all over the world wherein the Bitcoin trading volume in North America and European countries too got adversely affected. However, CryptoCompare’s report does not take into account the volume of Binance or BitMEX, which are mainly unregulated derivative products.
The pinch was also felt by Grayscale who is considered to be the crypto market leader. Grayscale also found to be reported that the trading activity within its Bitcoin Trust has gone down as low as US$ 40 Million in one single day. However, Bitcoin is not alone effected by the bearish conditions. On the other hand, Ethereum (ETH), which is the second-largest cryptocurrency of the world and hosting high number of trading transactions through its blockchain is, is also undergoing a massive low in the volume since June this year. An official of Ethereum blockchain told that Ethereum has lost about half of its value for the past few months and created an alarming situation as suggested by CryptoCompare.
The crypto derivatives are a great source of determining the performance of the selected digital assets’ value amongst the investors who are keen to acquire more exposure by comparing the digital asset with the traditional assets.
However, in the initial days of September, the value of Bitcoin went down from US$ 12,000 to US$ 10,000. Yet, the digital asset recovered remarkably and is currently trading at nearly US$ 10,613.