Crypto Spot Trading Volumes Drop 66% Since Peak as Next Cycle Approaches

Bitfinex reports a significant decline in crypto spot trading this quarter, with volumes down 66% from the peak in January as traders retreat amid lower ETF inflows and a turbulent macroeconomic environment.

In a Sunday post on X, the exchange indicated that this slowdown reflects historical market cycles, where prolonged lulls often precede the next major phase in the market.

According to CoinMarketCap data, 30-day crypto spot volumes have decreased from over $500 billion in early November to around $250 billion this week.

Trading activity struggled to maintain the $300–$350 billion range throughout late November and early December, with several trading sessions dipping to around $200 billion, levels not seen for months. This decline followed a brief surge in mid-November, when volumes rose above $550 billion before quickly retreating, data indicates.

Related: Brazil’s largest private bank recommends investors allocate 3% to Bitcoin in 2026

Bitcoin approaching breakout as key levels tighten

In the meantime, market analysts suggest that the current environment resembles previous pre-breakout phases. In a recent post on X, Michaël van de Poppe highlighted a tightening price structure in Bitcoin (BTC), asserting that significant macro events in the coming week could lead to a surge in volatility.

“Bitcoin remains above this critical level, but I expect volatility to increase significantly over the next few days,” the analyst remarked.

He identified key levels at $89,000 and $92,000, suggesting that breaking above resistance could propel prices toward $100,000 before 2026, while losing support could threaten a retest of lower ranges.

Related: Bitcoin rallies falter at $94K despite Fed policy changes: Here’s why

Crypto declines despite Fed rate cut

As Cointelegraph reported, Bitcoin briefly rose to $94,330 early in the week, driven by Strategy’s $962 million purchase, its largest Bitcoin investment since mid-2025.