The decline in trading volumes in cryptocurrency markets has attracted the attention of analysts and investors. What lies behind this trend, and how will it impact the market's future?
Current Market Situation and Reasons
Today, trading volumes have significantly weakened, suggesting market stagnation. Investors seem to have taken a break without selling, leading to notably low trading volumes in exchanges. Despite a strong demand through the ETF channel, substantial increases in altcoins would require enhanced trading volumes across exchanges.
Predictions for Bitcoin and Altcoins
Analysts express doubts about Bitcoin's further rise, especially noting the lack of significant increases in spot trading volumes. Kyle pointed out that "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." In this context, altcoins are also experiencing small setbacks but without major declines. DaanCrypto noted that "the Total Altcoin Market Cap has held its local support, but there is no clear trend."
Role of Global Events in Cryptocurrency Markets
With the U.S. celebrating Independence Day on July 4, markets will see half-day trading on July 3. Analysts speculate that former President Trump may take decisive actions during this time. Potential moves from figures like Trump can significantly impact the market.
Thus, the current situation in the cryptocurrency market raises questions about its further development. The decrease in trading volumes may be not just a temporary phenomenon but also a signal of deeper issues within the industry.
