Spot crypto trading volumes on prominent exchanges have slipped from a record of $2 trillion in October 2025 to $1 trillion at the end of January, reflecting a clear fallback from investors and reduced demand, as per the analysts.
The price of Bitcoin remains 37.5% down from its October peak at the time of a liquidity drought and a prominent bout of risk aversion, resulting in shrinking volumes. The analyst from CryptoQuant, Darkfost, stated on January 2 that spot demand is drying up and it has been mainly influenced by the October 10 liquidation event.
Since October, crypto spot volumes on prominent exchanges have halved, as per the report of CryptoQuant. Taking an example, Binance witnessed $200 billion in Bitcoin volume in October, and it has now fallen to about $104 billion.
The reduction in volumes has taken the market back to levels among the minimal observed since 2024, indicating a clear fallback from investors in the crypto market and then weaker demand.
Market liquidity is another factor, as indicated by stablecoin outflows from exchanges and about $10 billion in stablecoin market cap fall, they added. The head of research at Arctic Digital, Justin d’Anethan, mentioned that the largest short-term risks for Bitcoin in the upcoming few months seem macro-influenced.
He further mentioned the uncertainty revolving around Kevin Warsh’s hawkish stance as Fed Chair could mean minimal or reduced rate cuts, a robust dollar, and higher real yields, which all pressure risk assets, comprising crypto.
The Chief Executive Officer of Alphractal, Joao Wedson, highlighted that two things are required for a Bitcoin price bottom to take place. Short-term holders (STH) need to be submerged, which is the recent scenario, and long-term holders (LTH) “start carrying losses”, which hasn’t taken place yet.
He also mentioned that bear markets only conclude when the STH realised price falls lower than the LTH realised price, and bull markets start when it crosses back above.
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