Cryptocurrency trading volume halved in a year…"Possible entry into a short-term bearish market"

Overall cryptocurrency trading volume has declined by nearly half over the past year.

On the 12th (local time), cryptocurrency analytics firm Matrixport said daily cryptocurrency trading volume fell from 352 billion dollars to 178 billion dollars over the past 12 months, a decrease of about 49.4%. Daily trading volume has effectively been halved over the past year. Matrixport analyzed, "Over the same period, cryptocurrency market capitalization increased from 2.4 trillion dollars to 3.7 trillion dollars," adding, "This gap suggests that (investors') market participation is limited and momentum has weakened."

A possibility of entering a bear market was also raised. Matrixport said, "Recent on-chain indicators suggest Bitcoin (BTC) may have entered a short-term bearish phase," adding, "There are potential upside catalysts, but it is uncertain whether those factors will lead to a sustained upward trend." It added, "Low liquidity means trading activity on listed exchanges and fee generation remain weak."

Meanwhile, Bitcoin is trading at 103,488.28 dollars on CoinMarketCap as of 4:40 p.m., down 1.34% from the previous day. Compared with one month ago, it is down 10.46%.