- Buy Crypto
- Markets
Futures- Spot
- Copy Trade
- Earn
- More
Cryptocurrency Trading Volume Hits 2024 Low, Spot Demand Weakens
BlockBeats News, February 3rd, analysis pointed out that as liquidity shrinks and risk appetite declines, the spot trading volume in the crypto market has dropped significantly, and investor participation has weakened noticeably. Data shows that the spot crypto trading volume on major exchanges has halved from around $2 trillion in October last year to $1 trillion at the end of January, falling to the low range seen since 2024.
CryptoQuant stated that spot demand has been cooling off since October, and the market correction was largely triggered by the liquidation event on October 10. The current Bitcoin price has retraced about 37.5% from the October high, and liquidity tightness has further compressed trading volume. Taking Binance as an example, Bitcoin's monthly spot trading volume has dropped from around $200 billion in October to the current $104 billion.
In addition to weak demand, market liquidity is also under pressure. Analysts noted that stablecoins continue to flow out of exchanges, coupled with a decrease of about $10 billion in total stablecoin market capitalization, further weakening the buy-side support.
At the macro level, institutions believe that short-term risks still lean towards the downside. The head of research at Arctic Digital pointed out that the market's hawkish expectations for Kevin Warsh potentially becoming the Fed chairman may imply a slowdown in rate cuts, a strengthening dollar, and rising real interest rates, thereby exerting pressure on risk assets, including crypto assets. However, some analysts still believe that the current correction is helpful in deleveraging and cooling down speculation. If there are subsequent inflows of Bitcoin ETF funds, progress in crypto-friendly legislation, or weakening economic data prompting a shift to loose monetary policy, the market may see a new window for a rebound.
You may also like
The Cryptographic Past of the Middle East
Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin
Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech
AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.
Vitalik wrote a proposal teaching you how to secretly use AI large models
On the eve of the explosion of on-chain options
WEEX AI Hackathon: How Did This AI Trading Winner Succeed?
A self-taught AI trading enthusiast achieved top-10 results at the WEEX AI Hackathon. Learn about the mindset, AI tools, and lessons behind this impressive performance.
One Balance to Rule Them All: Gravitas' On-Chain Prime Broker Ambition
That person who cashed out at the NFT peak is now selling a new shovel in the OpenClaw craze
Inter-generational Prisoner's Dilemma Resolution: The Nomadic Capital and Bitcoin's Inevitable Path
Upstream and downstream are starting to fight, all for the sake of everyone being able to "Lobster"
Circle and Mastercard Announce Partnership, the Next Stage for the Crypto Industry Belongs to Payments
From 5 Mao per kWh of Chinese electricity to a $45 API export: Tokens are rewriting currency units
Why is OpenAI playing catch-up to Claude Code instead?
Vitalik wrote a proposal teaching you how to secretly use AI large models
The doubling of Circle's stock price and the paradigm shift of stablecoins
Key Market Information Discrepancy on March 13th - A Must-See! | Alpha Morning Report
On-Chain Options Explosion.ActionEvent
《Time》 Magazine Names Anthropic as the World's Most Disruptive Company
The Cryptographic Past of the Middle East
Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin
Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech
AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.
Vitalik wrote a proposal teaching you how to secretly use AI large models
On the eve of the explosion of on-chain options
WEEX AI Hackathon: How Did This AI Trading Winner Succeed?
A self-taught AI trading enthusiast achieved top-10 results at the WEEX AI Hackathon. Learn about the mindset, AI tools, and lessons behind this impressive performance.
App