The volume of cryptocurrency trading in the Czech Republic in March fell by two-fifths compared to the previous month, to CZK 1.1 billion. Year-over-year, it was down by 8%. In the first quarter, Czechs bought and sold cryptocurrencies on the domestic market for CZK 3.9 billion, roughly one billion less than in the same period last year. The reason was a significant drop in the price of Bitcoin. This is according to information from cryptocurrency exchanges and analysts for ČTK.
You may be interested in: How to choose the right exchange for trading your cryptocurrencies?
Crypto Market Cools in March: Volumes Drop, but Investors Keep Buying
“In March, following an exceptionally strong February, we saw an expected slowdown in activity, with the total trading volume reaching 413.8 million crowns. Of this, 264.7 million was accounted for by purchases and 149.1 million by sales. This shows that despite the short-term slowdown, investor confidence in cryptocurrencies remains strong,” Marek Kyrsch, director of Anycoin, told ČTK.
Globally, according to Kyrsch, March confirmed that crypto markets remain sensitive to macroeconomic and geopolitical influences. During the month, Bitcoin reacted to tensions in the Middle East by falling to this year’s low of around $64,000, but subsequently stabilized in the range of $66,000 to $67,000.
Another cryptocurrency exchange, Bit.plus, recorded a 30 percent decline in trading volume compared to February. Purchases continued to outpace sales. According to Bit.plus Director Martin Stránský, despite the decline in interest, Czech investors are still taking advantage of price corrections to make more favorable purchases.
“The main driver of March’s developments was the clash between the continuing inflow of institutional capital through ETFs and macroeconomic uncertainty regarding global liquidity. While stock indices, led by the S&P 500, achieved solid results during this period, Bitcoin lagged behind them in growth momentum. This can be attributed to the normalization phase following the end of the recent four-year cycle. Furthermore, market sentiment remains rather cautious,” added Stránský.
Read next: Anycoin Review
Crypto Stabilizes After Volatility: Adoption Grows Despite Price Drop
According to Rostislav Plachý of Golden Gate, March in the cryptocurrency market was marked by stabilization at lower price levels following a previous period of volatility. “Bitcoin showed a slight recovery, managing to pull itself out of the worst of it after the slumps at the beginning of the year, with its value in Czech koruna mostly ranging from 1.4 to 1.6 million,” he noted.
Setting aside the price decline and the geopolitical situation, the start of the year was unprecedentedly positive for crypto, according to Wood & Company Blockchain+ analyst Tomáš Kalabis, as blockchain has become part of the global infrastructure for executing and settling financial transactions across all sectors. “Leading global service and software providers such as Visa, Mastercard, Fiserv, Citi, and others are driving this shift from theory to practice.
They already offer payment services and interbank settlement using Solana or Ethereum blockchains and continue to accelerate their integration into their products. They are well aware of their significance for the international transfer of funds,” added Kalabis. At the same time, despite falling prices of digital assets, the supply of digital dollars on the blockchain and the amount of Bitcoin held in institutional products continue to grow.
Don’t Miss: BITmarkets.com: Crypto Exchange Review That Rewrites the Rules of the Game
Source: ČTK
