Trading volume hits new lows: the truth behind Bitcoin and altcoin price increases with shrinking volume

2026-01-05 14:41:13

Abstract generation in progress

【CryptoWorld】An interesting phenomenon has emerged. Recently, the spot trading volume of Bitcoin and various altcoins has fallen to its lowest level since November 2023. Honestly, this is a bit strange—prices are going up, but trading volume is shrinking.

Think about it, under normal logic, a price increase should be accompanied by rising enthusiasm and active trading. But the current situation is exactly the opposite. It seems that market demand isn’t that strong, and what truly supports the price might be just a small amount of large funds operating behind the scenes. From another perspective, this “rising price with decreasing volume” situation directly reflects a drying up of liquidity.

What does this mean? It indicates that although the market looks good, actual participation is declining. A small number of buy orders can push prices higher, but it also means that if large sell orders appear, the market could face significant shocks. For traders, this is a warning sign—weak liquidity increases the risk of volatility.

BTC-0,05%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

7 Likes

Reward
7
9
Repost
Share

Comment

0/400

GateUser-5854de8b

· 6h ago

Price is rising, volume is shrinking; this market is indeed a bit fake, big players are probably playing a shell game.

View OriginalReply0

LiquidationWatcher

· 23h ago

Prices rise but volume shrinks, big players are quietly making money --- It's the same old trick, a few people pump the market to harvest retail investors --- The most dangerous time is when liquidity dries up; a single large sell order can cause bloodshed --- Why does this rally feel so fake, with no enthusiasm? --- So retail investors shouldn't follow the trend; only genuine institutions are secretly accumulating

View OriginalReply0

ZKProofEnthusiast

· 01-07 15:49

Price rises but volume shrinks—this trick is old now, the big players are accumulating The more it surges wildly, the more cautious you should be; a rebound with no volume is the easiest way to get burned It's the same old story, big players say it will rise and it does, retail investors just go along for the ride What does it mean when liquidity dries up? Nobody really believes in this This wave of market movement looks obviously fake and inflated, just a prelude to a false alarm Feels like blowing bubbles—sooner or later, they will burst Volume shrinks but prices rise? Looks like we're the ones taking the risk The real institutions have already left, leaving us to cut each other's grass

View OriginalReply0

TokenSherpa

· 01-07 04:53

actually, let me break this down for you — if you examine the historical voting patterns in liquidity provision mechanisms, empirically speaking, this price-volume divergence we're seeing is like... fundamentally a governance precedent issue masquerading as market dynamics, ngl

Reply0

GasFeeCrier

· 01-05 15:11

Price rising with decreasing volume, this is the big players absorbing the supply. Retail investors should have already started to exit. --- Hmm... it looks like liquidity is really dying. A single large order can create a big dip. --- Wait, small amounts of funds pushing the price up? That just shows the market is fake. --- A typical trap to lure in buyers. I bet the next wave will fall very hard. --- No wonder recent trading has been so quiet, no wonder the slippage is so large. --- This phenomenon has been obvious for a while; the main players are up to something. --- I was wondering why the price was rising so weakly—no one is truly taking over the position. --- Liquidity drying up is a ticking time bomb. The days of making money while doing nothing are over. --- What's the point of being so cautious? Isn't it better to just exit? --- Price rising with decreasing volume = false prosperity. Everyone be careful.

View OriginalReply0

StakeOrRegret

· 01-05 15:07

The price rises while the volume shrinks, you really need to be careful; it feels like big players are manipulating it. Wait, isn't this the usual trick before cutting the leeks? If the trading volume doesn't follow the price, then everything is just fake.

View OriginalReply0

GateUser-3824aa38

· 01-05 15:05

The pattern of rising prices and shrinking volume is tired; is this the market maker accumulating positions?

View OriginalReply0

StealthMoon

· 01-05 14:50

Price is rising, volume is shrinking, big players are definitely accumulating A few people are playing, retail investors have already left Waiting for this wave to collapse

View OriginalReply0

SnapshotDayLaborer

· 01-05 14:45

Price rising, volume shrinking? Isn't this just the big players accumulating? Retail investors are all scared away.

View OriginalReply0