Matrixport: Compared to market cap expansion, cryptocurrency trading volume is unusually low, indicating that Bitcoin may have entered a phase of a bear market

On November 12th, Matrixport released a market view which stated, "When compared to the expansion of market capitalization, the cryptocurrency trading volume is unusually low. Over the past 12 months, the market capitalization has increased from $2.4 trillion to $3.7 trillion. Meanwhile, the average daily trading volume has shrunk from $352 billion to $178 billion (a 50% decrease). This shrinking trading volume reflects a cooling of market participation, weakening of momentum, and constitutes a structural caution signal." "On-chain signals suggest that Bitcoin may have entered a phase of a bear market. Although there have been catalysts, the short-term momentum may not be strong enough to sustain an upward trend. In a low-liquidity and weakly biased environment, trading platforms are under significant pressure, and market activity and trading revenue continue to be suppressed."