Crypto CFDs during Long Crypto Winter: Did Retail Brokers Suffer?

Interview featuring Contentworks Agency and Finance Magnates

Bitcoin has lost more than half of its value since the beginning of 2022, and on-chain indicators show that only the most hardcore HODLers have remained in the cryptocurrency market. The prolonged crypto winter is causing fewer transactions and decreasing the average trading volumes. This affects negatively not only the ‘physical’ market for digital assets but also the contracts for difference (CFDs) industry, which recently was heavily based on bitcoin, ethereum (ETH), and a number of other altcoins. How are retail brokers responding to this situation?

According to Reuters and Bloomberg, trading volumes across major crypto exchanges worldwide declined more than 40% in June. Spot trading volumes also fell 27.5% across centralised coins in June, dropping to their lowest since December 2020, at $1.41 trillion. In fact, spot and derivatives trading (including CFDs) volumes declined more than 15% from their May levels. Derivative trading volumes, which account for 66.1% of the crypto market, fell to their lowest since July 2021 to $2.75 trillion.

Commented Charlotte Day, the Creative Director at Contentworks Agency.


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