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Cryptocurrency spot trading has declined to levels not seen since the year before last., 2026/02/03 18:12:26
The volumes of spot cryptocurrency trading on major exchanges have halved, decreasing from approximately $2 trillion in October to $1 trillion by the end of January, according to analysts at CryptoQuant. The specialists attribute this trend to a decline in demand and a sense of “detachment among investors.”
As an illustration, experts pointed to the Binance exchange. The trading volume of Bitcoin on the largest platform fell from $200 billion in October to $104 billion. Analysts compared the current trading volumes to those observed at the beginning of 2024.
In addition to the drop in trading volumes, the market is also facing pressure from reduced liquidity, according to representatives of CryptoQuant. This pressure is evident in the outflow of stablecoins from exchanges and a decrease in the market capitalization of such tokens by approximately $10 billion. The correction is largely attributed to the mass liquidation of positions that occurred on October 10, lament crypto analysts.
Bitcoin has lost 37.5% from its peak in October and was trading at $78,809 on Tuesday, February 3.
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Joao Wedson, founder and CEO of the analytical firm Alphractal, believes that the bottom for Bitcoin’s price has not yet been reached. Given the low liquidity in 2026, there are two conditions necessary for Bitcoin to hit its minimum possible price. First, short-term holders (STH) must incur losses, which is already happening. Second, long-term holders (LTH) need to start experiencing losses, but this has not yet occurred.
Wedson explained that a bearish trend concludes when the realized price for STH falls below the realized price for LTH. Conversely, a bullish trend begins when the STH price rises above the LTH price again. Currently, the realized price for STH still exceeds that of LTH. The expert warns that if the price drops below the support level of $74,000, Bitcoin may fully enter a bearish trend zone.
Over the past week, $1.7 billion was withdrawn from cryptocurrency exchange-traded funds (ETFs). This capital outflow has occurred for the second consecutive week amid shifting investor sentiment, as previously reported by CoinShares.
