Crypto spot trading volumes on major exchanges have decreased by 66% since January 2025, highlighted by Bitfinex's market report noting a "lull" preceding potential cycle movements.
This decrease signals weakening spot demand and market consolidation affects major cryptocurrencies, potentially indicating future volatility or trend shifts in trading behavior.
Crypto Spot Trading Volumes Plunge by 66%
Crypto spot trading volumes on major exchanges have declined by about 66% from January 2025 peaks, according to Bitfinex's latest market report. This decline reflects a market environment described as a "lull" similar to pauses before prior cycle phases.
The 66% drop originates from Bitfinex's market analysis, indicating a weakening in spot demand. Major exchanges are experiencing negative cumulative spot volume delta, suggesting sellers are dominating. These observations are based on trading behavior and market structure.
Market Climate Signals Risk-Off Behavior
Bitfinex's findings highlight broader market implications related to current crypto trading patterns. Traders are now selling on rallies, with spot activity affecting major cryptocurrencies. This suggests increased risk-off behavior in the current market climate. According to Bitfinex Research Analysts, "Cumulative trading-volume delta on major exchanges has turned negative, indicating traders are selling at highs rather than accumulating chips." Historical patterns, as highlighted here, suggest that significant volume decreases coincide with changes in market cycles, hinting at a shift possibly ahead. Expert opinions support this evaluation.
Volume Declines Often Precede Market Movements
Similar market "lulls" were observed in early 2022, showing sharp drops in trading volumes. Like current conditions, such environments have previously been phases of mid-cycle consolidation, followed by renewed phases of market activity. Experts highlight how past volume declines have often preceded significant market movements. With many tokens in loss and spot demand weak, historical patterns suggest potential for further trend developments. Data underscores the relative market weakness compared to traditional assets.
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