Crypto market sees 11.4% drop in June, BTC falls 19.1%

The market capitalisation of cryptocurrency experienced a notable decline over the past month, according to the latest Binance Australia Monthly Crypto Market Wrap. The report highlights an 11.4% decrease in total market capitalisation during June, with Bitcoin (BTC) suffering a significant 19.1% price fall over the same period.

The report indicates that most of the top traded coins saw declines in June. However, there were a few exceptions. Notably, the TON ecosystem reached record activity levels, which propelled the NOT coin ten places higher, making it the sixth most traded coin. Additionally, BNB emerged as a strong performer, noting an 86.4% increase in value year-to-date.

Ben Rose, General Manager for Binance Australia and New Zealand, commented on the inherent volatility of the cryptocurrency market, emphasising the long-term perspective many investors hold. "Investors are accustomed to the inherent volatility in the cryptocurrency market, but the long-held HODL mentality brings with it a perspective that the true potential of crypto lies in the long-term possibilities they present," he said.

Rose also noted the broader context of the past year's market performance. "Over the past year we have experienced a period of strong growth and relatively low volatility, so periods of the crypto market retreating are not unexpected," Rose remarked.

The retreat of Bitcoin in June follows a strong start to 2024, attributed to factors such as the introduction of BTC ETFs and the recent halving event. However, several significant events contributed to the downward pressure on BTC's price during June. These events include the announcement by Mt. Gox of a planned repayment of over 140,000 BTC in July, large BTC movements by the US and German governments to centralised exchanges, and the forced sale of BTC by miners adjusting operations after the halving of the mining block reward. This led to the lowest miner Bitcoin balances in over 14 years.

Commenting on these developments, Rose pointed out the inevitability of the decline given these downward pressures. "Given these downward pressures, it is unsurprising BTC has retreated from its record highs achieved earlier this year," Rose noted. However, he also highlighted Bitcoin's performance over the past year. "It is worth remembering though that BTC still doubled returns for investors over the past year, making it an undeniably strong performer over the past 12 months."