DBS bank reports 4X growth in Bitcoin buys on DDEx exchange in June

A serious cryptocurrency selloff in June 2022 has sparked extra curiosity in Bitcoin (BTC) from institutional traders, in line with information from one of many largest banks in Singapore.

The whole variety of trades on DDEx greater than doubled in June 2022 as in comparison with April 2022 amid the rising investor urge for food for digital belongings like Bitcoin and Ether (ETH). Purchase orders on DDEx accounted for 90% of all trades in June as cryptocurrencies traded at notable reductions in mid-2022, DBS stated.

In comparison with April 2022, the quantity of Bitcoin bought on DDEx in June noticed a fourfold improve, whereas the amount of ETH grew 65%, DBS reported.

“With the digital asset business experiencing unprecedented volatility, traders who consider within the long-term prospects of digital belongings are gravitating in the direction of trusted and controlled platforms,” the financial institution stated within the assertion.

In line with DDEx CEO Lionel Lim, the digital asset business has seen a “nice reset” because the funding narrative has been transferring away from chasing for yield. “Traders at the moment are as a substitute in search of out secure harbours to commerce and retailer their digital belongings amid the continued market volatility,” Lim famous.

Associated: Summer doldrums? Crypto volumes are down 55%, according to CoinShares

As beforehand reported, June 2022 became the worst month for the Bitcoin price since September 2011, as its month-to-month losses mounted to 40%, with worth tumbling below $20,000. The continued crypto winter has been largely attributed to the crisis of algorithmic stablecoins and the following catastrophe in cryptocurrency lending as crypto lenders ran out of liquidity.

“Each participant must respect the dangers concerned and the truth that there aren’t any bailouts within the area, so if a borrower fails to repay, a lender has to just accept their loss. There isn’t a risk-free yield, and sometimes the yield isn’t well worth the dangers,” Trezor crypto analyst Josef Tětek said.