Crypto trading volume has fallen over 50% since February, reflecting signs of trader exhaustion and weaker market momentum. Daily trading volume peaked at $440 billion but dropped to $163 billion by March 12. Analysts from Santiment reported that declining trading volumes amidst slight price recoveries indicate waning enthusiasm among traders, with many expressing feelings of exhaustion and capitulation. Moreover, the total market capitalization has shrunk by nearly 25% since early February, further compounding concerns over market strength. Overall, current trading activity suggests uncertainty, with fewer traders believing in the potential for profitable outcomes at existing prices. The diminishing trading volumes could signal weakening market momentum, with any potential rebounds being temporary unless supported by increased trading activity. The Crypto Fear & Greed Index remains in 'fear' territory, reflecting ongoing market caution as investors remain skeptical about sustained price increases.

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