Analysis: The cryptocurrency market has hidden liquidity risks, with market capitalization rising but trading volume not keeping pace.

PANews reported on November 12 that according to today’s chart analysis by Matrixport, compared to market capitalization expansion, cryptocurrency trading volume remains abnormally low. Over the past 12 months, market cap increased from $2.4 trillion to $3.7 trillion, while the daily average trading volume decreased from $352 billion to $178 billion (a 50% decline). The shrinking volume reflects a cooling of market participation and weakening momentum, signaling structural caution. On-chain signals indicate that Bitcoin may have entered a cyclical bear market, and although catalysts have appeared, short-term momentum may be insufficient to sustain an upward trend. In the context of low liquidity and weakness, exchanges are under significant pressure, and market activity and trading revenue continue to be suppressed.