- Santiment data show that the trading volume on the crypto-baisse scale since its peak on February 27.
- The total market capitalization of the crypto has lost 1.01 billion of dollars since January.
- The bulls are looking for increasing prices with growing volumes for a lasting recovery; Until then, caution can prevail.
Crypto total market capitalization has lost $ 1.01 Billion of dollars since January, while health data show that the volume of trading on the crypto scale has dropped since the February peak. For a healthier and more durable recovery, the bulls are looking for the rise in prices accompanied by an increase in volumes; Until the commercial activity happens again, the prudent feeling of the market is likely to prevail.
Crypto Mariste loses $ 1.01 Billion in three months
Santiment Data reports that the main volume of trading of cryptocurrency has been declining since its peak on February 27 (when traders were optimizing soaking prices).
Trading volume of major cryptocurrencies. Source: Santiment
However, as shown in the graph below, the drop in the total market capitalization of cryptography, of a peak of $ 3.69 Billions of dollars in January to 2.69 billions of dollars on Thursday, reflects a loss of 1.01 billion of dollars in three months.
This drop in market capitalization was mainly triggered by multiple events such as the late Crypto Exchange FTX starting its reimbursements, the pricing increases by US President Donald Trump, the pirates who hold, the fears of increased recession, the markets selling the announcement of the American strategic BTC and the growing concerns concerning a fragile world economy.
Total market capitalization table of cryptography.
When the volume of trading for major cryptocurrencies constantly decreases, even during slight price recovery (seen Wednesday), it generally indicates the decrease in the enthusiasm of traders. Such a scenario indicates that traders are prudent and are not confident that the recovery of prices will last. A reduced commercial activity reflects uncertainty, as fewer traders are convinced that purchase at current levels will generate profitable results.
In addition, a volume of negotiations down in the middle of light price rebounds can be a sign of early alert of weakening the momentum of the market. Fewer participants in purchase cannot maintain the upward trend, leading to short -term recovery and a global decrease trend.
In his reportBrian declares: “Reduction of volume during minor rebounds is not necessarily a direct bearish signal, but volume is a metric which measures the participation of retail and institutional merchants.”
The analyst continued that if the two groups are waiting for the other to stimulate the stock market capitalizations to make their next movements, this can lead to the stagnation of prices with little movement (and a slight tendency to light up towards the disadvantage). For a healthier and more durable recovery, the bulls are looking for the rise in prices accompanied by an increase in volumes; Until the commercial activity happens again, the prudent feeling of the market is likely to prevail.
