Crypto Spot Trading Slows as Macro Risks Weigh on Bitcoin

TheNewsCryptoPublished on 2026-02-03Last updated on 2026-02-03

Abstract

Spot crypto trading volumes on major exchanges have dropped significantly, falling from $2 trillion in October 2025 to $1 trillion by the end of January. Bitcoin's price remains 37.5% below its October peak amid reduced liquidity and heightened risk aversion. Analysts attribute the decline to weakening spot demand, influenced by a major liquidation event in October. For instance, Binance’s Bitcoin trading volume fell from $200 billion to $104 billion. Market conditions have retreated to some of the lowest levels since 2024. Experts note that macroeconomic factors—such as potential Fed hawkishness, a stronger dollar, and higher real yields—are pressuring risk assets like Bitcoin. Additionally, a true market bottom may require long-term holders to start realizing losses, which hasn’t yet occurred.

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.

What Did Prominent Leaders Say?

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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Related Questions

QWhat is the main reason for the decline in crypto spot trading volumes according to the article?

AThe decline is attributed to macro risks, a liquidity drought, and a prominent bout of risk aversion, which have reduced investor demand.

QHow much has Bitcoin's price fallen from its October peak at the time of the article?

ABitcoin's price remains 37.5% down from its October peak.

QWhich event did the analyst from CryptoQuant cite as a major influence on the drying up of spot demand?

AThe analyst cited the October 10 liquidation event as a major influence on the drying up of spot demand.

QWhat two conditions did Joao Wedson say are required for a Bitcoin price bottom to occur?

AShort-term holders (STH) need to be submerged, which is the recent scenario, and long-term holders (LTH) need to 'start carrying losses', which hasn't happened yet.

QWhat did the head of research at Arctic Digital identify as the largest short-term risks for Bitcoin?

AHe identified macro-influenced risks, such as uncertainty around the Fed Chair's hawkish stance, which could mean minimal rate cuts, a robust dollar, and higher real yields, all pressuring risk assets like crypto.

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