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Cryptocurrencies are in a summer crash as they went into a two-month correction period following a series of negative stories.

Trading volumes at the largest exchanges, including Coinbase, Kraken, Binance and Bitstamp, fell more than 40% in June, according to data from crypto market data provider CryptoCompare, which cited lower prices and lower volatility as the reason for the drop.

In June the price of bitcoin hit a monthly low of $28,908, according to the report, and ended the month down 6%. A daily volume maximum of $138.2 billion on June 22 was down 42.3% from the intra-month high in May.

Experts point to China as a major catalyst. China’s latest of many efforts over the years to crack down on the industry have had a greater impact than ever before. Investors and experts in the cryptocurrency ecosystem still see a long-term positive trend for bitcoin and other cryptocurrencies, however.

“The Chinese crackdown has caused a lot of fear, which is showing up in markets,” said Teddy Vallee, chief investment officer at Pervalle Global. “The digital asset ecosystem got punched in the face, so it’s currently up against the ropes versus fighting in the middle of the ring. Typically when you have large sell-offs, participants are quite fearful and pull back their chips.”

Vallee added that he still isn’t seeing large flows back off exchanges, funding rates are still negative, the number of new wallets is lower.

China’s crypto activities

At the end of June, China ordered a halt to cryptocurrency as it prepares to launch its own state-backed digital currency. That shuttered mining operations across various provinces that had hosted 50% to 60% of all of bitcoin’s mining power.

Gabor Gurbacs, director of digital assets strategy at VanEck, noted that as miners left China, they weren’t transacting as much with the bitcoin they’ve mined. Additionally, thanks to the negative regulatory undertones from the Financial Action Task Force, the intergovernmental anti-money laundering watchdog, have dragged the mood down even further in the markets. Mining has rapidly become more problematic than lucrative in China.

Volume still higher than a year ago

Despite the dramatic drop in trading volume, it’s still much higher than it was last year, Clara Medalie, research lead at crypto market data provider Kaiko.

Volumes plunged in June on pretty much every exchange, however, overall volumes are still magnitudes greater than they were one year ago today,.

The one positive set of news from the derivatives markets is that the bitcoin options put to call ratio is now sitting at 0.60, from a high of 0.65 in June, which means that traders are becoming less bearish as the months progress.