Bitcoin May Have Entered Phase Correction as Trading Volume Falls 50%, Matrixport Says

Bitcoin may have entered a phase correction despite market cap expansion, Matrixport said on Nov. 12. Over the past 12 months, total crypto market capitalization rose from $2.4 trillion to $3.7 trillion, while average daily trading volume contracted from $352 billion to $178 billion, a 50% decline. The volume contraction reflects weakening market participation and momentum, serving as a structural caution signal, the firm said. On-chain indicators suggest Bitcoin's short-term momentum may be insufficient to sustain upward movement despite potential catalysts, with trading platforms facing pressure from suppressed activity and revenue in the low-liquidity environment.