The major cryptocurrency sale in June 2022 sparked more interest in Bitcoin (BTC) from institutional investors, according to data from one of Singapore’s largest banks.
The total number of trades on DDEx more than doubled in June 2022 compared to April 2022 amid growing investor appetite for digital assets such as Bitcoin and Ether (ETH). DBS said that orders for DDEx accounted for 90% of all trades in June as the cryptocurrency traded at significant discounts in mid-2022.
Compared to April 2022, the amount of bitcoin purchased on DDEx in June saw a fourfold increase, while the amount of ETH grew by 65%, according to DBS.
“With the digital asset industry subject to unprecedented volatility, investors who believe in the long-term prospects of digital assets are gravitating towards reliable and regulated platforms,” the bank said in the statement.
According to DDEx CEO Lionel Lim, the digital asset industry has experienced a “major reset” as the investment narrative is moving away from the pursuit of return. “Today’s investors are looking instead for safe havens to trade and store their digital assets amid the ongoing market volatility,” Lim noted.
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As previously reported, June 2022 has become the worst month for bitcoin price since September 2011, with monthly losses soaring to 40%, with bitcoin dropping below $20,000. The ongoing crypto winter is largely due to the algorithmic stablecoin crisis and the subsequent disaster in crypto lending as crypto lenders run out of liquidity.
“Every participant needs to respect the risks involved and the fact that there are no bailouts in the space, so if the borrower fails to repay, the lender has to accept their loss. There are no risk-free returns, and often What is not worth the risk return.