The Cryptocurrency Market is Experiencing Exhaustion: Is it the Final Stretch Before the Rally? - Coin Bulletin

The trading volume in the cryptocurrency market has been declining since the end of February, and investors are now seen to be cautious or even desperate.

Since the rapid rise at the end of February in the cryptocurrency markets, transaction volumes have significantly decreased. Especially in the last two weeks, the losses in market values indicate that investor behaviors have changed significantly. Now, the majority of investors no longer believe that this downward trend in the market will end even with short-term price increases.

According to the data shared by Santiment, the trading volume in **Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and other major cryptocurrencies is significantly decreasing. Despite the small price increases on Wednesday, it is observed that investors are not eager to trade. This indicates that investors are strengthening their belief that buying at current levels would not be profitable.

Transaction volumes reveal investor psychology

The decrease in trading volumes indicates that the market is dominated by an atmosphere of uncertainty. Especially, the continued decrease in trading volumes even with small upward movements indicates that investors are adopting a cautious approach. Especially in situations where individual and institutional investors wait for each other to act, long periods of sideways movements can be observed in the markets.

In this context, it should not be interpreted as a direct bearish market (bearish market) signal that the decrease in volumes. However, the cautious behavior of both individual and institutional investors reveals high doubts about the sustainability of the market uptrends.

According to the data shared by Santiment, **the transaction volumes in Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies are clearly decreasing, raising questions about investors' confidence in the markets. This situation is creating uncertainty in the market about whether new price movements will occur in the short term or not.