Cryptocurrency Trading Volume Plummets Over 50%... "Investor Fatigue Accumulating"

# Cryptocurrency Market Sees Sharp Decline in Trading Volume New York – Recent weeks have seen a significant drop in trading volume within the cryptocurrency market, according to a report from Cryptopolitan on March 13th. Analytics platform Santiment suggests that this decrease in trading volume, alongside a reduction in overall market capitalization, reflects growing investor fatigue and disappointment. # Declining Trading Volumes Signal Investor Sentiment Shift Data from Santiment reveals that since February 27th, trading volumes in the cryptocurrency market have plummeted by more than 50%. According to CoinGecko, trading volumes, which hit a year-high of $440 billion in early February, had fallen by 63% as of March 12th. In February, optimistic investors saw price dips as buying opportunities, resulting in increased trading volumes. However, continuous market volatility has since led to a decline in trading as investors grew weary. # Volume Drop Despite Price Rebounds Points to Eroded Confidence Santiment highlights that trading volumes for major cryptocurrencies have declined even in scenarios where prices have rebounded slightly. This trend indicates that investors have become more cautious and are increasingly skeptical about the sustainability of price adjustments. Additionally, the report notes that investors lack confidence in the market's potential to resume its upward trajectory, reducing their willingness to invest at lower prices for potential gains. Data from CoinMarketCap shows that the total market capitalization of all cryptocurrencies has decreased by more than 25% since early February. Particularly in March, concerns over a potential U.S. recession have accelerated the market downturn. # Continued Volume Decline May Signal Bear Market Santiment warns that if the reduction in trading volume persists, it could be an indicator of a bear market. Their analysis suggests that price rebounds are unlikely to be sustainable without robust buying activity, and an increase in trading volume is essential to support any upward movement. The current price recovery could be temporary, and the potential for further declines cannot be ruled out. To regain its vitality, the market needs increased trading volumes and restored investor confidence.