Crypto Spot Volumes Drop 66% from Peak Ahead of Next Cycle Boom

Crypto Market Faces Sharp Decline in Spot Trading Volumes Amid Rising Uncertainty

Cryptocurrency spot trading volumes have experienced a significant downturn this quarter, declining by approximately 66% from their peak in January. This slowdown is attributed to reduced ETF inflows and a broader macroeconomic climate that has kept traders cautious. Despite fluctuations, analysts note that such periods often precede subsequent market moves, suggesting potential volatility ahead.

In a recent post on X, Bitfinex reported that the decline in trading activity mirrors prior market cycles, where extended lulls tend to foreshadow the next upward surge. CoinMarketCap data corroborates this trend, showing 30-day crypto spot volumes decreasing from over half a trillion dollars in early November to around $250 billion recently. Throughout late November and early December, trading volumes mostly hovered between $300 billion and $350 billion, with some sessions dipping below $200 billion — levels not seen in months. This decline followed a brief spike in mid-November, when volumes surpassed $550 billion before retreating swiftly.

Meanwhile, market analysts observe that the current environment resembles previous pre-breakout phases. Michaël van de Poppe noted on X that Bitcoin is consolidating within a tightening price structure, with significant macro events expected to induce heightened volatility shortly. “Bitcoin is holding above a crucial level, but we should see volatility increase markedly in the coming days,” he commented.

He highlighted key resistance levels at $89,000 and $92,000, suggesting that a breach above these could accelerate Bitcoin’s progression toward $100,000 before 2026. Conversely, a failure to hold these support levels may lead to a retest of lower ranges, adding to the uncertainty.

Earlier in the week, Bitcoin briefly surged to $94,330, buoyed by Strategy’s substantial $962 million purchase — its largest Bitcoin investment since mid-2025. However, this momentum waned quickly as traders eagerly awaited the final Federal Reserve interest rate decision of the year. The Fed’s 25-basis-point rate cut, announced Wednesday, was largely anticipated and offered only a fleeting market boost, as analysts highlighted that the move had already been priced in by the markets.

According to Jeff Ko, an analyst at CoinEx, the rate cut’s impact was limited, with no substantial upside ensuing. As broader macroeconomic factors continue to influence sentiment, traders remain cautious, awaiting clearer signals of the next market direction amidst declining volumes and mounting uncertainty in the crypto space.