Cryptocurrency trading volumes are falling globally after peaking in February 2025 amid buying opportunities during the crypto slump, Cointelegraph reports.
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Cryptocurrency trading volumes and falling prices of digital assets are clear signs of trader exhaustion and weaker market momentum, analysts say.
Daily trading volume hit its highest level this year in early February at $440 billion, according to CoinGecko data. Since then, it has fallen 63% to $163 billion as of March 12.
Analytics firm Santiment said on March 13 that the decline in trading volumes suggests that traders' enthusiasm for the asset class is waning.
The total market capitalization has fallen nearly 25% since the beginning of February, losing $900 billion as the crypto market correction deepens.
The decline has accelerated in the past 10 days, with the market losing 15% of its value on fears of a U.S. recession amid escalating global trade tensions.
Santiment said traders are becoming cautious, not trusting the sustainability of the current cryptocurrency price growth.
“In essence, the decline in trading activity reflects uncertainty as fewer traders are convinced that buying at current levels will yield profitable results,” the analysts noted.
According to Santiment, the weakening in trading volumes seen amid small price rebounds could be an “early signal of weakening market momentum.”
Analysts also note that without significant buying activity, price gains could quickly lose their momentum “as there is insufficient underlying support for a sustained uptrend.”
While falling trading volumes are not necessarily a bearish signal, Santiment experts note that both trading volumes and prices need to rise simultaneously for the market to recover.
“To confirm a more robust and durable market recovery, bullish investors typically want to see both prices and trading volumes rise simultaneously,” the analysts added.
Currently, the total cryptocurrency market capitalization is approximately $2.8 trillion, which is the same as last year during the same period.
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