The cryptocurrency market is showing signs of exhaustion: trade volumes decreased by 63%. The decrease in trader activity indicates a weakening of investor enthusiasm, which raises concerns about the market’s ability to sustain current dynamics, informs Cointelegraph.
After reaching a yearly high in early February, the total trading volume of cryptocurrencies has decreased by 63%. In February, daily trading volume reached $440 billion, but as of March 13, it fell to $163 billion.
“When the trading volume of major cryptocurrencies is steadily decreasing, even in the face of a slight recovery in prices, this is often a sign of a decrease in trader enthusiasm”, – said the analytical company “Santiment”.
The total capitalization of the crypto market has decreased by almost 25% since the beginning of February, losing $900 billion as a result of the deepening of the market correction. The fall accelerated in the last 10 days, when the market lost another 15% of its value due to fears of a US recession.
Experts warn that the decrease in trading volumes against the background of moderate price growth may indicate a weakening of market momentum. This makes growth volatile and raises the risk of a further downturn, as any recovery could be short-lived.
