Spot bitcoin trading activity has plummeted this quarter, with Bitfinex reporting a 66% drop in volumes since January’s peak.
The reduction in trading comes as ETF inflows slow and macroeconomic uncertainty persists, prompting traders to step back from the market.
Spot volumes echo historic market lulls
In a recent post on X, Bitfinex highlighted that this decline is reminiscent of earlier cycles, where extended periods of low spot trading volumes have often ‘preceded the next leg in the cycle.’
According to CoinMarketCap data, 30-day spot volumes across major exchanges have fallen from over $500 billion in early November to about $250 billion this week.
Activity struggled to stay above the $300–$350 billion range during late November and early December, with some sessions dipping to $200 billion, levels not seen in months.
The sharp decline followed a brief spike above $550 billion in mid-November before retreating rapidly.
Analysts eye bitcoin price breakout
Market analysts suggest current conditions resemble pre-breakout phases seen in previous cycles.
Michaël van de Poppe noted on X that key support and resistance levels for bitcoin are tightening. He explained:
“Bitcoin holds above this crucial level, but I’m sure we’ll start to see volatility pick up significantly over the course of the next days.”
Van de Poppe identified $89,000 and $92,000 as key levels, suggesting a move above resistance could accelerate a rally toward $100,000 before 2026, while losing support risks a retest of lower ranges.
Fed rate cut brings little relief
Earlier this week, bitcoin briefly surged to $94,330, buoyed by Strategy’s $962 million BTC purchase—its largest since mid-2025.
However, the rally was short-lived as traders awaited the Federal Open Market Committee’s final meeting of the year.
The Federal Reserve delivered a widely expected 25-basis-point rate cut, giving markets a temporary lift before sentiment cooled.
CoinEx analyst Jeff Ko remarked that the move was ‘already priced in,’ offering little upside for bitcoin.
