Q2 crypto market sees continued deleveraging

The cryptocurrency market is continuing its deleveraging phase, according to a Q2 market analysis report from crypto prime broker FalconX. The firm noted that spot trading volume fell 25% from the previous quarter to $1.6 trillion, its lowest level since the third quarter of 2023, while futures trading volume declined 12% to $9 trillion. However, FalconX observed signs of the market bottoming out, as spot trading volume in June increased 13% month-over-month and futures open interest stabilized. The report identified the potential passage of the U.S. CLARITY Act and a recovery in ETF inflows as key variables for the third quarter, suggesting that regulatory progress and institutional capital could serve as catalysts for a rebound in the fourth quarter.