Bitcoin Bear Market Signals: Trading Volume Slumps 50% as Market Cap Rises, Matrixport Warns

Market cap and trading activity show a widening gap in Matrixport’s latest market view. Over the last year, overall market capitalization rose from $2.4 trillion to $3.7 trillion, while daily trading volume slipped from $352 billion to $178 billion—a roughly 50% drop that signals weaker participation in the crypto market.

The divergence between capital growth and turnover points to cautious market structure, with subdued liquidity and fading price-discovery momentum weighing on near-term catalysts.

On-chain indicators have begun to align with a Bitcoin bear-market regime, suggesting limited upside potential absent new catalysts. In a low-liquidity environment, trading platforms face pressure on revenue streams as activity remains constrained.

Traders should monitor the on-chain signals and liquidity shifts to assess risk, while exchanges adjust risk controls as market dynamics evolve.

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