Spot cryptocurrency trading volumes have dropped precipitously, recording their lowest levels of 2024 across major centralized exchanges (CEXs). This sharp decline signals a significant cooling off period in market enthusiasm, following the vigorous activity seen during the first quarter driven by U.S. Bitcoin ETF launches and new all-time highs for BTC and ETH.
Aggregate monthly trading volumes are estimated to be down by over 40% compared to the peak figures recorded in March 2024. Data from early July indicates that daily consolidated volumes consistently hover below the $20 billion threshold, a level not breached since late 2023. This sustained drop in liquidity highlights a clear reduction in both retail speculation and institutional participation. Bitcoin and Ethereum, typically the backbone of trading activity, have seen their combined daily volume sink to multi-month troughs.
Analysts attribute the weakening demand to several interconnected factors. Chief among them are prevailing macroeconomic uncertainties, particularly the ‘higher for longer’ interest rate stance by the U.S. Federal Reserve, which encourages investors to de-risk or hold cash. Furthermore, the immediate catalyst provided by the spot Bitcoin ETFs has faded, with net inflows slowing dramatically after the initial wave of excitement. The lack of compelling price action and the market’s entry into a prolonged consolidation phase have driven many participants to the sidelines.
While low volume often precedes periods of sharp volatility, the current stagnation suggests market fatigue. A significant new catalyst—such as a clear shift in Fed policy, renewed institutional capital deployment, or a major technical breakout—will be required to break the current trend and reignite broad investor demand.
Source: Spot crypto volumes plunge to 2024 lows as investor demand weakens
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