According to Kaiko, trading volume in the cryptocurrency market has dropped to $15 billion. This is the lowest weekly figure in a year. Moreover, it is 70% lower compared to the January peak.
Low cryptocurrency trading volume means traders are acting more cautiously as market momentum weakens. Prices of digital assets also become more susceptible to volatility, as there are fewer buy and sell orders available for large transactions.
Market participants are in no rush to trade cryptocurrencies, awaiting catalysts such as an influx of institutional investment or regulatory decisions.
On the other hand, reduced activity does not always indicate a further decline in the price of digital assets. Markets can remain calm for extended periods before a significant shift occurs in one direction or the other.
Today, major cryptocurrencies are rising. Over the last 24 hours, the market's capitalization jumped by 1.2%, surpassing the $2.18 trillion mark. Bitcoin rose 1.51% to $63,464, and Ethereum added 0.64% to $1,852, according to CoinMarketCap.
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