According to Bit.plus, cryptocurrency trading in the Czech Republic experienced a significant decline of 18 percent in the first half of 2021, reaching approximately 1.8 billion CZK. In June, Czech traders exchanged cryptocurrencies for about 300 million CZK, which is the same amount as the previous year but six percent lower than the previous month’s figures. However, the price of Bitcoin, the most traded cryptocurrency, witnessed a notable increase of 14 percent in June, reaching 687,490 CZK compared to May. Moreover, Bitcoin’s price surged by over 53 percent in the past year, with Tuesday’s price standing at 659,120 CZK, as reported by CoinMarketCap.

The month of June saw Bitcoin gaining momentum as a result of significant announcements from global players, followed by a slight cooling of demand in the Czech market. Bit.plus director Martin Stránský attributed this cooling to the pre-holiday period, which typically sees a dip in trading activity.

The entry of prominent financial institutions into the cryptocurrency market in June further contributed to the strengthening of Bitcoin. Wood & Company analyst Tomáš Kacerovský highlighted that Blackrock, the world’s largest investment corporation, applied with the US regulator to establish a Bitcoin ETF fund. This announcement triggered a race among other financial institutions such as CME, Invesco, and Fidelity, to seek permission to create their own Bitcoin ETF funds. Deutsche Bank also applied for a license to trade digital assets in Germany. Kacerovský noted that these developments put an end to several weeks of decline in cryptocurrency prices following the Blackrock application.

However, cryptocurrencies faced significant pressure in early June due to lawsuits filed by the Securities and Exchange Commission (SEC) against leading traders Binance and Coinbase. Jakub Hlavenka, CEO of 2Bminer, explained that the market was further unsettled by debates surrounding the classification of altcoins as securities, potentially affecting Bitcoin in the future.

Lukáš Raška, an economist at Portus, observed that the overall market capitalization of the cryptocurrency market continued to track Bitcoin’s development. The market value of the entire cryptocurrency market reached $1.2 trillion, driven by Bitcoin’s increasing popularity resulting from the steps taken by institutions like Blackrock. Bitcoin’s market dominance, which exceeded 50 percent for over two years in June, further solidifies its position in the crypto market.

Despite the decline in cryptocurrency trading in the Czech Republic, the growing interest from financial institutions and the positive performance of Bitcoin indicate a resilient market that continues to attract attention and investment.

Article by Prague Forum