Matrixport has highlighted a concerning trend in the cryptocurrency market, noting a significant drop in daily trading volume despite a rise in total market capitalization. Over the past year, the crypto market cap increased from $2.4 trillion to $3.7 trillion, yet daily trading volume halved from $35.2 billion to $17.8 billion. This decline suggests reduced market participation and weakening momentum. The firm warns that Bitcoin may have entered a short-term bear market, as on-chain data indicates insufficient momentum for sustained upward movement. The low-liquidity environment is putting pressure on trading platforms, with market activity and trading revenue continuing to decline.