BitMart, BitMEX closures seen as signal of shakeout among crypto exchanges

A shakeout appears to be underway in the centralized crypto exchange sector after BitMart and BitMEX announced business shutdowns in quick succession, BeInCrypto reported. The outlet said BitMart began winding down operations on July 26, three days after BitMEX announced its withdrawal, and the number of exchanges shutting down in July rose to three including AscendEX. Industry watchers see the prolonged bear market, a decline in retail altcoin investors, shrinking futures trading volume, tighter regulation and high operating costs as factors driving closures among small and mid-sized exchanges. The market may later be reorganized around regulation-compliant exchanges and institutional capital, while raising concerns that power could become concentrated in a small number of venues. BeInCrypto added that the latest closures do not necessarily signal a market bottom, with macroeconomics, liquidity, regulation and investment demand still remaining key variables for the next upcycle.