Crypto trading volume is decreasing, indicating exhaustion and weaker market momentum

From Cointelegraph

March 12, 2025 10:26 PM:

Crypto trading volumes and digital asset prices are showing signs of exhaustion and weaker market momentum. Daily trading volume has dropped by 63% from $440 billion in early February to $163 billion on March 12. Market data from CoinMarketCap confirms the trend, with volume peaking in early March before falling back by 52%.

Analytics firm Santiment suggests declining trader enthusiasm for cryptocurrencies as trading volume decreases, indicating exhaustion, hopelessness, and capitulation among traders. Market capitalization has decreased by almost 25% since February, losing $900 billion. The recent 15% decline over the past 10 days is attributed to fears of a U.S. recession and global trade tensions.

Santiment warns that weakening trading volume during minor price bounces could signal weakening market momentum, making price gains unsustainable without robust buying participation. While shrinking volume isn’t always a direct bearish signal, rising volume is needed for a healthier recovery. The Crypto Fear & Greed Index remains in “fear” territory below 50 since February 21.

The current crypto market capitalization stands at $2.8 trillion, similar to levels seen a year ago before seven months of consolidation. Traders are becoming cautious, doubting the longevity of current price movements, as uncertainty leads to reduced trading activity. Bulls seek rising prices and volumes simultaneously for a sustainable recovery.

Read more at CoinTelegraph: Crypto trading volume slumps, signaling market exhaustion: Analysis