The cryptocurrency market faced a turbulent June 2024, with significant events from Mt. Gox and the German government causing major ripples.
A recent report from Binance Research highlights the key factors behind this downturn and provides insights into what lies ahead.
According to Binance Research, the overall market capitalization dropped by 11.4% in June.
Historically, June has been a tough month for cryptocurrencies, with the market only posting positive results twice in the last five years.
This year, nine out of the top ten cryptocurrencies by market cap ended the month in the red.
The long-awaited payout to Mt. Gox creditors added to the market’s woes.
After a decade of waiting, the release of significant amounts of Bitcoin back into the market created unease among investors, triggering a sell-off that contributed to the overall decline.
Additionally, movements of large Bitcoin reserves by the German government to centralized exchanges amplified market instability.
The government’s actions raised concerns about potential sell-offs, which further dampened investor confidence and market performance.
Amidst the gloom, Toncoin (TON) stood out as a rare success story. TON surged by 17.5%, reaching a historic high of $8.24.
This growth was largely driven by the success of The Open League program and strong support for the ecosystem through grants. Active daily addresses on the TON network also hit a record high, further fueling its rise.
The NFT sector continued to struggle, with sales plummeting by 26.2% compared to May, totalling $46 million.
Leading the pack was the DMarket NFT marketplace with $18.9 million in sales, but even top collections like Bitcoin Puppets and NodeMonkes saw significant declines.
Miners, on the other hand, have been net sellers of Bitcoin since November 2023, marking the longest selling streak since 2017.
This trend is attributed to the halving event, which has squeezed miners’ revenues, forcing them to sell off their holdings to stay afloat.
May had painted a more optimistic picture, with the market recovering and gaining 8.6% in capitalization.
However, June’s downturn has investors wary. Historical data suggests that July could see a rebound, with past Julys showing an average growth rate of 7.3%.
Two key events could influence July’s market trajectory: the final payouts from Mt. Gox and the potential approval of spot Ethereum ETFs by the SEC. Both events have the potential to significantly impact market dynamics.
