Analysis: The crypto market encounters concealed liquidity risks while market capitalization grows

Matrixport’s analysis on November 12th indicates that trading volume in the crypto market is lagging despite a market capitalization rise. Market cap jumped significantly, but the average daily trading volume plummeted to 178 billion USD, highlighting a potential bear phase for Bitcoin.

The decrease in trading volume reflects weakened market participation and signals caution among investors. With low liquidity, exchanges are under strain, resulting in reduced market activity and revenues.

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