Crypto Market Stagnates as Trading Volumes Plunge 40%

Trading volumes in the cryptocurrency market have significantly weakened, indicating a period of market stagnation. The common market adage of “sell in May and go away” may partly explain the current situation, as investors appear to have taken a break without actively selling, resulting in notably low trading volumes across exchanges. Despite a tenacious demand through the ETF channel, substantial increases in altcoins would require enhanced trading volumes across exchanges. The question thus remains: what are the data telling us?

Data often provides insights into potential movements within cryptocurrencies; however, price triggers and on-chain alerts collectively bring about volatility, setting the course for the market. Today, an analyst mentioned the lack of momentum, questioning whether we might be entering a period akin to the one experienced at the end of last year. His observations pointed towards a weak underlying momentum, with speculators remaining quiet. Unlike the gains seen in the second and fourth quarters of 2024, Bitcoin’s rise to $111,000 occurred without a genuine increase in spot trading volume. Current daily volumes are just $7.7 billion, a far cry from previous bull peaks. The lesson? Momentum is weak; speculators are silent. This looks less like a breakout and more like a pause. Consolidation isn’t over yet. For the analyst to be proven wrong, uncertainties related to tariffs need to be significantly reduced by early July.

As Bitcoin erases its gains, altcoins are experiencing small setbacks, albeit without major declines. With the U.S. celebrating the Fourth of July, markets will see half-day trading on July 3rd. If Trump is planning bold moves, he might do so early on Thursday or Wednesday. Considering past actions with Canada, one can’t predict, as anything is possible with Trump. In his assessment of altcoins, an analyst shared the TOTAL chart with this insight: “While the Total Altcoin Market Cap has held its local support, it shows no clear trend. Technically, a higher low than the one set in April might have formed last week. However, for a genuine long-term continuation, breaking local peaks above ~950 billion dollars is essential. Once broken, targeting cycle peaks becomes feasible.”

An analyst has set targets for LINK Coin at $17.96, $22, and subsequently $23.39. Due to a Wyckoff setup, an analyst suggested that ETH might be embarking on a journey towards its ATH. The current market conditions suggest a period of consolidation and uncertainty, with speculators remaining quiet and trading volumes significantly weakened. The future movements of cryptocurrencies will depend on various factors, including market sentiment, regulatory developments, and technological advancements. Investors and traders should closely monitor the market for any signs of a breakout or further consolidation.