How do trading volumes affect the cryptocurrency market?

Could you elaborate on the significance of trading volumes in relation to the cryptocurrency market? I'm curious to understand how increased or decreased trading activity impacts the overall market dynamics. Does a surge in trading volumes typically indicate bullish sentiment, or could it also signal an impending market correction? How do traders interpret these fluctuations, and what strategies do they adopt to capitalize on them? Additionally, how do trading volumes compare to other factors like market capitalization, volatility, and news events in influencing the market? Your insights would be greatly appreciated.