Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin rally masks fragile liquidity as spo
Markets
Share
Share this article
Copy linkX (Twitter)LinkedInFacebookEmail
Bitcoin rally masks fragile liquidity as spo
Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows
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
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Sign me up
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.
Loading...
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
More For You
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.
View Full Report
More For You
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.
Read full story
Latest Crypto News
BNB token ticks higher as technical upgrades frame tight price compression
Goldman Sachs sees regulation driving next wave of institutional crypto adoption
Robinhood leaning into advanced traders as crypto volatility reshapes user behavior
Bitcoin eyes $94,000 as crypto prices manage early U.S. gains for second straight session
Japan’s finance minister says she supports crypto trading at stock exchanges
Crypto traders can now speculate on housing prices through Polymarket
Top Stories
Bitcoin eyes $94,000 as crypto prices manage early U.S. gains for second straight session
Memecoin comeback talk builds as DOGE, SHIB, BONK rally in early 2026
Goldman Sachs upgrades Coinbase to buy, cuts eToro to neutral
Strategy boosted bitcoin holdings and cash reserve last week
Goldman Sachs sees regulation driving next wave of institutional crypto adoption
Crypto wallet firm Ledger faces customer data breach through payment processor Global-e
Market Opportunity
Belong Price(LONG)
$0.003845
$0.003845$0.003845
USD
Belong (LONG) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
You May Also Like
CEO Sandeep Nailwal Shared Highlights About RWA on Polygon
The post CEO Sandeep Nailwal Shared Highlights About RWA on Polygon appeared on BitcoinEthereumNews.com. Polygon CEO Sandeep Nailwal highlighted Polygon’s lead in global bonds, Spiko US T-Bill, and Spiko Euro T-Bill. Polygon published an X post to share that its roadmap to GigaGas was still scaling. Sentiments around POL price were last seen to be bearish. Polygon CEO Sandeep Nailwal shared key pointers from the Dune and RWA.xyz report. These pertain to highlights about RWA on Polygon. Simultaneously, Polygon underlined its roadmap towards GigaGas. Sentiments around POL price were last seen fumbling under bearish emotions. Polygon CEO Sandeep Nailwal on Polygon RWA CEO Sandeep Nailwal highlighted three key points from the Dune and RWA.xyz report. The Chief Executive of Polygon maintained that Polygon PoS was hosting RWA TVL worth $1.13 billion across 269 assets plus 2,900 holders. Nailwal confirmed from the report that RWA was happening on Polygon. The Dune and https://t.co/W6WSFlHoQF report on RWA is out and it shows that RWA is happening on Polygon. Here are a few highlights: – Leading in Global Bonds: Polygon holds 62% share of tokenized global bonds (driven by Spiko’s euro MMF and Cashlink euro issues) – Spiko U.S.… — Sandeep | CEO, Polygon Foundation (※,※) (@sandeepnailwal) September 17, 2025 The X post published by Polygon CEO Sandeep Nailwal underlined that the ecosystem was leading in global bonds by holding a 62% share of tokenized global bonds. He further highlighted that Polygon was leading with Spiko US T-Bill at approximately 29% share of TVL along with Ethereum, adding that the ecosystem had more than 50% share in the number of holders. Finally, Sandeep highlighted from the report that there was a strong adoption for Spiko Euro T-Bill with 38% share of TVL. He added that 68% of returns were on Polygon across all the chains. Polygon Roadmap to GigaGas In a different update from Polygon, the community…
Share
BitcoinEthereumNews2025/09/18 01:10
Ionis partner GSK announces positive topline results from B-Well 1 and B-Well 2 Phase 3 studies for bepirovirsen, a potential first-in-class medicine for chronic hepatitis B
– Primary endpoint met in both trials – – Bepirovirsen demonstrated a statistically significant and clinically meaningful functional cure rate – – Chronic hepatitis
Share
AI Journal2026/01/07 15:16
iFLYTEK Makes U.S. Debut at Pepcom 2026 with AI Recorder S6 and AI Translation Earbuds
LAS VEGAS, Jan. 7, 2026 /PRNewswire/ — iFLYTEK Co., Ltd., a leading global Artificial Intelligence company specializing in speech and language technologies, today
Share
AI Journal2026/01/07 15:15