Trading Volume Decrease

Definition ∞ Trading volume decrease signifies a reduction in the total quantity of a specific asset or market exchanged over a defined period. This metric indicates waning investor activity and reduced liquidity. A lower trading volume often accompanies periods of market consolidation or uncertainty.
Context ∞ In crypto news, a trading volume decrease is often interpreted as a sign of diminishing market interest or a precursor to significant price movements. Low volume can suggest a lack of conviction among buyers and sellers, making the market more susceptible to large price swings. Monitoring this metric provides insight into overall market health and investor participation.