The drastic decline in Bitcoin's trading volume reflects reduced market participation, possibly due to investor caution amid high volatility and regulatory fears. It could also indicate a loss of momentum or a shift toward stablecoins and other safe-haven assets. Low liquidity exacerbates price swings, creating a cycle of further uncertainty.
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Ethereum's price fluctuates closely with Bitcoin's currently because both are affected by global liquidity conditions. As the leading cryptocurrency, Bitcoin's price trends often drive the overall market sentiment. In addition, many investors allocate assets in the cryptocurrency market based on Bitcoin's trends, which leads to Ethereum's price moving in tandem with Bitcoin's.
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Correlation between Bitcoin and traditional safe - haven assets: In the current macro - economic context, the correlation between Bitcoin and gold and stocks has dropped to near zero, indicating a decoupling phenomenon. Bitcoin is no longer strongly correlated with traditional safe - haven assets, and its unique asset characteristics are becoming more prominent.
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