- Crypto trading volume plunges 63% since February, hitting $163B, signaling potential trader exhaustion.
- Analysts warn price gains without volume could reverse, highlighting fragility in recent recovery.
The cryptocurrency market has shown tentative recovery, with a global market cap of $2.71 trillion, reflecting a 1.13% increase, per CoinMarketCap. However, analysts caution that declining trading volumes and stagnant price movements signal underlying weaknesses.
Crypto trading volume peaked at $590 billion in February during dip-buying frenzies but has since plummeted 63% to $163 billion as of March 12, according to ETHNews.
CoinMarketCap data similarly shows trading volume retreating 52% from its March 2025 high.
Analytics firm Santiment noted on X that trading volume has steadily dropped since its February 27 peak.
“Declining volume during price rebounds, like those seen recently, often reflects waning trader enthusiasm,” the firm stated.
Persistent low participation hints at exhaustion and capitulation among investors, undermining the sustainability of upward trends.
Is This a Bearish Signal?
While the drop in volume doesn’t confirm a bear market, it underscores skepticism about current price levels. ETHNews analysts warn that without a surge in buying pressure, short-term gains risk reversal.
“Recoveries require both rising prices and volume to validate trends,” one observer noted.
The Crypto Fear & Greed Index, lingering at 45 (below the neutral 50 threshold), highlights persistent uncertainty. Geopolitical factors, such as Trump’s tariffs, further cloud market sentiment.
Altcoin Sherpa, has outlined two potential paths for Bitcoin (BTC) amid heightened market volatility
With Bitcoin currently trading at $82,757—nearly flat over 24 hours—Sherpa emphasized that a breakdown below the $78,000 support level could trigger a sharp decline to the mid-$60,000 range. Conversely, reclaiming $90,000 could position BTC to retest its all-time high of $109,000.
$BTC basically just two paths- this low established at 78k feels really vital and if we lose that, you just see mid 60ks. If we can somehow get back within the range at 90k, you probably see a retest of ATH. But that’s a while away.
Until then, it’s mostly a waiting game. expect… pic.twitter.com/J8565C8wHf
— Altcoin Sherpa (@AltcoinSherpa) March 11, 2025
“Bitcoin’s immediate fate hinges on $78,000” the trader told 244,000 followers on X.
“A breach could lead to $60,000, while a recovery to $90,000 might revive bullish momentum. Until then, volatility will dominate before a clear bottom forms.”
The analyst also highlighted Aptos (APT), a layer-1 blockchain, suggesting it may have found a short-term floor after bouncing off $4.80. Despite a 7.8% drop in the last day, APT trades at $5.12, with Altcoin Sherpa noting its relative stability since early February.
“Some altcoins, like APT and ACT, have maintained lows despite broader market swings, signaling potential bottoms,” he added.
Bitcoin’s price trajectory remains uncertain as traders weigh macroeconomic factors and regulatory developments. The analyst cautioned against impulsive moves, urging patience amid choppy price action.
“Expect turbulence until a clear bottom emerges,” he stated.
As of today, Bitcoin (BTC) is trading at $80,617, reflecting a 3.59% decline in the past 24 hours.
Over the past week, BTC has dropped by 11.06%, and over the past month, it has decreased by 17.34%. Despite this correction, Bitcoin remains 33.06% higher in the last six months and is up 12.73% year-over-year.
