When cryptocurrency trading volume plunges, the interest of the traders goes down because the price subsequently drops. As a result, trading volumes at the most meaningful exchanges go drastically down by 40%, and the negative stories start to cook.

Lower prices and lower volatility lead to a decline in trading volume in exchanges.  If there is no volatility, there are no profits to make, and therefore, investors move their investments to areas where they can profit.

Regulators cracking down on the industry also cause an impact. However, there are savvy investors and experts in the cryptocurrency ecosystem who believe that there is a long-term positive trend in the cryptocurrency space because they are looking beyond fear.

Fear manipulates sentiments, and investors who continue to feel the pain after the losses in the crypto market hesitate to start back over again.

It has been seen that when cryptocurrencies hit their all-time highs, many people invested, the market attracted a lot of new people who invested at the top. But, eventually, when there was a dip, they lost their money.  And after a loss, usually, half the market is gone, and similar high volumes happen only with new entrants and few positive trends.

When old stories which used to trigger do not work anymore, new stories creep in. Fresh, recent events like a US Senator Investing in Bitcoin and Ethereum spark a new fire among investors.  Pat Toomey, the US Senator Investing in Bitcoin and Ethereum via Grayscale, brings back the charm.

Politicians and significant people in the States declaring their investments have a method of creating a wow and eventually getting people to follow suit.

Analysts talking about Toomey’s investment have to state that the US Senator would have purchased between $1,000 and $15,000 in the Grayscale Ethereum Trust and the Grayscale Bitcoin Trust during mid-June this year. Discussing the disposition of the investment pointed to how the Senator is currently trending at a loss on these two investments considering the current price.

Pennsylvania Republican is investing nearly $30,000 in Grayscale Ethereum Trust and Grayscale Bitcoin Trust.  Senator Toomey previously wrote to Janet Yellen, Treasury Secretary, asking for less burdensome regulations for cryptocurrencies.  All of these news trigger optimism in the market and rays of new hope.

Rumors about Apple prospecting to make a massive investment in bitcoin had the forums and social media abuzz with claims that the tech giant will announce a $2 billion cryptocurrency purchase! Rumors create the needed hype and pump the price up by triggering the positive sentiments of investors.

Those looking for volatility will now jump into the market, executing their strategy of making profits from the bearish and bullish trends.

Argentina prospecting to pay their workers in Bitcoin creates the image of crypto becoming an everything. So, the market tends to get new stories cooking, which eventually revives the trading volume in cryptocurrency exchanges.