The cryptocurrency market has been experiencing notable declines in trading volumes over recent weeks, raising questions about its future development. While interest in altcoins persists, trading activity remains low.
Can Bitcoin Regain Its Speed?
Recent data indicates that Bitcoin's price movements largely depend on market factors and blockchain developments. Market participant Kyle notes a lack of momentum: "Unlike the gains seen in the second and fourth quarters of 2024, Bitcoin's rise to $111,000 occurred without a genuine increase in spot trading volume. Current daily volumes are just $7.7 billion, far below previous bull peaks. The lesson? Momentum is weak; speculators are silent. This looks less like a breakout and more like a pause. Consolidation isn’t over yet."
Are Altcoins Prepping for a Comeback?
As Bitcoin lowers its preceding increments, altcoins face minor fluctuations. Analysis by DaanCrypto indicates that the total altcoin market capitalization is holding its local support without showing a clear trend. "While the Total Altcoin Market Cap has held its local support, it shows no clear trend. Technically, a higher low than the one set in April might have formed last week," the analyst remarked. For a genuine long-term continuation, breaking local peaks above $950 billion is essential.
Awaiting Changes in the Market
Current weak trading volumes prompt anticipation for changes in the market, especially since important economic factors and potential policy changes could impact short-term prospects. Interest in altcoins such as Ethereum remains high, and observers anticipate a potential return to previous highs.
In conclusion, the cryptocurrency market currently faces significant challenges associated with low trading volumes and uncertainty in macroeconomic conditions. Market participants are closely watching for potential changes that could stimulate growth in trading activities.
