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Bitcoin rally masks fragile liquidity as spo
Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows
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Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows
Bitcoin and altcoin prices have pushed higher, but Glassnode data shows spot trading activity has dropped to its weakest levels since late 2023.
By Oliver Knight|Edited by Cheyenne Ligon
Jan 5, 2026, 4:14 p.m.
Crypto spot volume chart (Glassnode)
What to know:
- Spot trading volumes for bitcoin and altcoins have fallen to their lowest levels since November 2023, even as prices move higher, signaling weak underlying demand, Glassnode data shows.
- Thin liquidity can amplify price moves, as shallow order books allow relatively small trades to push markets sharply higher or lower — a dynamic flagged in CoinDesk research following October’s crash.
- Crypto market depth has failed to fully recover since October’s $19 billion liquidation event, leaving markets more vulnerable to exaggerated price swings and sudden reversals.
Bitcoin and the wider crypto market has started to wake up recently, but underlying liquidity conditions appear strikingly weak, according to onchain analytics firm Glassnode — a dynamic that echoes concerns raised in a CoinDesk analysis in November on hollow crypto market liquidity following the October crash.
Glassnode’s latest data shows that both bitcoin spot trading volume and aggregate altcoin spot volume have sunk to their lowest readings since November 2023, even as prices have climbed — a divergence that typically points to thinning market participation and fragile demand underneath the recent strength.
STORY CONTINUES BELOW
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Spot volume is a metric that assesses actual buying and selling activity on exchanges, a barometer of real trading interest.
Traditionally, healthy price advances are supported by rising volumes, as fresh capital and buyers enter the market. But in this case, spot volumes have not only failed to increase alongside prices, they’ve fallen to year-long lows, underscoring a lack of broad participation behind the moves.
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This assessment reiterates issues raised in a CoinDesk research piece published in November, which documented how liquidity across centralized exchanges — including bitcoin and ether market depth — failed to recover fully after the October liquidation cascade.
The research highlighted that post-crash, order-book depth remained structurally lower than before the sell-off, suggesting a new, thinner baseline of liquidity that leaves markets more vulnerable to exaggerated price reactions.
The October event, which resulted in $19 billion worth of leveraged positions being wiped out in a matter of hours, did more than unwind overextended bets. It reshaped the market’s underlying structure, leading to a sustained pullback in resting liquidity as market-making firms and liquidity providers pulled back, making markets shallower and less capable of absorbing large trades without meaningful price impact.
Bitcoin is currently trading at $93,500 after rising by 7.5% since Jan. 1, but the move on minimal volume is presenting traders with a number of warning signs.
Bitcoin TradingLiquiditySpot Trading
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KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market
Commissioned byKuCoin
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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BNB token ticks higher as technical upgrades frame tight price compression
Technically, BNB is compressed between rising support and a descending resistance zone near $910, indicating a balance rather than a clear direction.
What to know:
- BNB rose 1.7% to around $906, consolidating between $890 and $910, with steady demand and expanding trading volume during the push through $900.
- Technically, BNB is compressed between rising support and a descending resistance zone near $910, suggesting a balance rather than a clear direction, with neither buyers nor sellers in control.
- Traders are also monitoring developments on the BNB Chain, including a 2026 technical roadmap that targets increased throughput and lower fees.
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