Bitcoin spot trading volume kept shrinking in July, extending a longer downtrend across major exchanges, according to CryptoQuant analyst Darkfost. Aggregate spot volume on leading trading venues has dropped by more than 75% from the peak seen in late 2024. Binance alone still posted more than $35 billion in monthly spot volume, but that was far below the $246 billion recorded in November 2024, pointing to a broad cooling in market activity rather than weakness at a single platform.
Darkfost said the last time spot trading activity was this subdued was near the end of the 2023 bear market. He linked the weak demand for risk assets to several macro pressures: the continued escalation of the Iran-Israel conflict, persistent inflation, and lingering concerns that interest rates could stay higher for longer. In that setup, speculative assets have struggled to attract fresh participation.
At the same time, equities have been drawing in much of the available liquidity, with strong performance in the technology sector feeding that pull. Still, the analyst noted that this narrative had started to face questions in July. In his view, Bitcoin will need both a shift in the macro backdrop and, more importantly, a return of demand to regain upward momentum and lift spot volumes again.
Bitcoin spot trading volume continued its long decline in July, with aggregate spot activity across major exchanges down more than 75% from the peak reached in late 2024, according to CryptoQuant analyst Darkfost.
Binance alone recorded more than $35 billion in monthly spot volume, but that was still far below the $246 billion posted in November 2024. Other major platforms saw the same contraction over the same period.
Darkfost said the market has not seen trading activity this weak since the closing stage of the 2023 bear market.
He attributed the soft demand for risk assets to several macro factors. The continued escalation of the Iran-Israel conflict has weighed on risk appetite, while elevated inflation has kept alive concerns that interest rates may remain high. That backdrop has been unfavorable for speculative assets.
At the same time, the stock market has continued to absorb much of the available liquidity. Strong performance in technology shares helped drive that siphoning effect, though Darkfost said that narrative had started to come under question in July.
For Bitcoin to return to an uptrend, the analyst said the macro environment needs to shift. More importantly, demand has to come back, which he described as the only force that can truly push trading volume higher again.
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