Cryptocurrency Trading Volumes Plummet to 2024 Lows as Investor Demand Evaporates

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Spot trading volumes for cryptocurrency on major exchanges have collapsed, roughly halving from around $2 trillion in October to $1 trillion by the end of January. This sharp decline points to what analysts call a “clear disengagement from investors” and significantly weaker market demand.

The downturn is highlighted by Bitcoin’s performance, which is down 37.5% from its October peak. Analysts attribute the contraction to a widespread liquidity drought and a major bout of risk aversion.

“Spot demand is drying up,” stated CryptoQuant analyst Darkfost, noting the correction “has been largely driven by the Oct. 10 liquidation event.”

Exchange-specific data underscores the trend. For instance, Bitcoin volume on Binance cratered from approximately $200 billion in October to about $104 billion more recently.

Beyond the direct impact of liquidations, analysts cite mounting pressure on market liquidity. They point to consistent stablecoin outflows from exchanges and an overall decline of roughly $10 billion in the total stablecoin market cap as key factors.

“This contraction in volumes has brought the market back to levels among the lowest observed since 2024,” analysts concluded, “suggesting a clear disengagement from investors in the crypto market and, consequently, weaker demand.”