Santiment： The trading volume of the cryptocurrency market has continued to decline since February 27th, and market sentiment is becoming cautious

BlockBeats news, on March 13th, Santiment posted on X platform stating that "since the peak of trading volume on February 27th, the overall trading volume of the cryptocurrency market has continued to decline (at that time traders optimistically bought on dips). After further decline in the past two weeks, traders have shown signs of fatigue, despair, and surrender. When the trading volume of major cryptocurrencies continues to decline, even during periods of slight price recovery, it usually means that traders' enthusiasm has weakened. In this situation, traders have become more cautious, indicating that they may not believe that the current upward trend can continue. In addition, the contraction of trading volume during a slight rebound may be an early signal of weakened market momentum. If there is a lack of strong buying support, price increases may quickly lose momentum as there is not enough capital inflow to maintain the upward trend. This may mean that any rebound is only temporary, and prices still face the risk of falling again. The reduction in trading volume may not directly constitute a bearish signal during a slight rebound, but trading volume reflects the market participation of retail and institutional traders. If both are waiting for each other to drive market value growth and take the next action, the market may stagnate, showing low volatility or even a slight downward trend. For a healthier and more sustainable market recovery, bulls typically hope to see prices and trading volumes increase synchronously. Market sentiment may remain cautious until trading activity clearly recovers