Spot crypto trading volumes have fallen to their lowest levels since 2024 as investor engagement weakens and liquidity dries up across major exchanges.
Analysts said spot volumes have dropped from about $2 trillion in October to roughly $1 trillion by the end of January, alongside a 37% decline in Bitcoin from its October peak.
“Spot demand is drying up,”
Said CryptoQuant analyst, Darkfost, who attributed much of the contraction to the October 10 liquidation event and rising risk aversion.
CryptoQuant data show volumes on major venues such as Binance have roughly halved since October, signalling what analysts described as “clear disengagement from investors” and softer demand.
Market liquidity has also come under pressure, with stablecoin outflows from exchanges and an estimated $10 billion decline in total stablecoin market capitalisation.
Justin d’Anethan, head of research at Arctic Digital, said macro uncertainty and expectations of fewer US rate cuts are weighing on crypto, though he argued the downturn may be a healthy reset.
Alphractal chief executive, Joao Wedson, said Bitcoin is unlikely to have reached a cycle bottom yet, warning that deeper losses may be needed before long-term holders begin to capitulate.