BTC has moved into its fifth consecutive month of correction, according to CryptoQuant data. The report links the latest phase of weakness to an Oct. 10 event that triggered a sharp liquidity breakdown, with the heaviest impact showing up in the futures market. In a single day, open interest fell by more than 70,000 BTC, representing over $8 billion wiped from the market.
Liquidity pressure spread beyond derivatives
The pullback was not limited to leveraged positions. The source also pointed to stablecoin outflows from exchanges, while total stablecoin market capitalization shrank by about $10 billion during the same period. That combination suggests broader liquidity conditions have tightened, not just a one-day reset in futures exposure.
Spot volume has been cut in half since last October
Spot trading activity is telling a similar story. Since last October, BTC spot volume has fallen by half. Binance still held the largest share at $104 billion, but that is well below the level seen in October, when its volume was close to $200 billion. Over the same comparison period, Gate.io recorded $53 billion and Bybit posted $47 billion.
With turnover falling back to one of its lowest levels seen since 2024, the report said investors have been pulling away from the crypto market and demand has softened along with it. Under current conditions, the setup remains unfavorable for risk-taking trades, and any durable recovery would likely depend on a rebound in spot trading volume.