A worrying decline in volumes? While the price of bitcoins is trying to keep over $ 100,000, Santiment analysts have noticed a significant decline in the volume of trading throughout the crypto market. A situation that could be a sign of shortness of the market and losing the enthusiasm of investors. Explanation.
- The Bitcoin course tried to keep over $ 100,000, while the volume of trading decreased significantly and signaled the possible breath of the market crypto.
- 63 % decrease in volumes of trading since February emphasized the growing lack of interest in traders, with a capitalization of 25 % of a reduced market, impaired by global economic tension.
Volumes of free fall trafficking
According to Congeck data The daily volume of trading this year reached its highest level at the beginning of February, with $ 440 billion. However, this number dropped by 63 %, dropped to $ 163 billion 12th March.
On x on x that this decrease Indicates a A scattered lack of interest in merchants For cryptocurrencies. In fact, when the volume of trading of the main crypts decreases, even during mild prices, this means that the enthusiasm of traders is half a mast.
“When the volume of trading in the main cryptocurrencies regularly decreases, even at mild prices, it generally indicates the declining enthusiasm of traders. »»
This volume decrease reflects a combination fatiguefrom despair and surrender By merchants, especially after recent decreases in market capitalization. In short, traders would be Chafouins.
Revived market recovery?
Part of it The total capitalization of the crypt market Since the beginning of February it has decreased by almost 25 % and lost $ 900 billion. This deep market correction has been impaired Global trade tension And concerns about the recession in the United States.
Santiment emphasizes that traders become cautious and doubt the sustainability of contemporary bulls. Reducing business activities actually reflect uncertainty because fewer merchants are convinced that current prices will offer profitable opportunities.
This decrease in volume during small prices can be a “Highlight the weakening character of the market dynamics”. Without the robust participation of buyers, price gains can quickly lose its dynamics, so the market will be prone to new drops.
“This leads to the possibility that any reflection is temporary, with prices vulnerable to a new decline. »»
Although volume reduction is not necessarily a direct drip signal, it remains worrying. For sustainable recovery, the analysts of the Santiment believe that the current increase in prices and volume should be seen. Currently, the capacity of the market crypto is around $ 2.8, a level similar to the level of last year before the Consolidation period.