- Bitcoin trading volume fell over 75% from late 2024, reaching lows last seen in 2023.
- Binance’s Bitcoin spot volume dropped from $246B in Nov. 2024 to over $35B in July.
- Macro uncertainty and stronger equity markets reduced demand for Bitcoin and other risk assets.
Bitcoin trading volume on major cryptocurrency exchanges dropped in July, reaching its lowest levels since the late stages of the 2023 bear market. Data shared by on-chain analyst Darkfost showed that trading activity has continued to slow despite Bitcoin remaining one of the largest digital assets by market capitalization.
The decline coincided with cautious investor sentiment, expectations of a possible U.S. Federal Reserve interest rate increase, and broader macroeconomic concerns. While Binance retained its position as the largest Bitcoin spot exchange by trading volume, industry activity remained below the peaks recorded late in 2024.
Bitcoin Trading Volume Drops Across Major Exchanges
CryptoQuant analyst Darkfost reported that Bitcoin spot trading volume on major exchanges has fallen by more than 75% compared with levels recorded in late 2024. Binance processed above $35 billion in Bitcoin spot volume during July, well below the approximately $246 billion recorded in November 2024.
The slowdown extended across other leading exchanges. Bybit recorded a decline of 85% in spot trading volume over the same period, while Coinbase posted a 61% decrease. OKX also registered a 67% drop, indicating that lower trading activity has affected multiple platforms rather than a single exchange.
Macro Events Coincide With Lower Market Activity
The analyst attributed the weaker trading environment to several macroeconomic developments that reduced demand for risk assets.
The analyst noted that the conflict between the United States and Iran weighed on investor sentiment. Inflation concerns also continued to support expectations that interest rates could remain high, further pressuring speculative assets.
At the same time, equity markets attracted a larger share of available liquidity as technology stocks continued to perform strongly, though that trend began to come under review in July.
Bitcoin Market Outlook
Market concerns increased after Citadel Securities said it expects the U.S. Federal Reserve to raise interest rates by 25 basis points at its upcoming meeting. Traders currently price in roughly a one-in-three probability of a rate increase.
Caroline Mauron, co-founder of Orbit Markets, said Bitcoin faced pressure from rising expectations of a Federal Reserve rate hike alongside macro concerns related to AI-driven credit risks.
Related: BTC’s Trading Volume Plummets to Historic Lows – What Does It Mean for Investors?
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
