Crypto Spot Trading Volumes Halve to $1 Trillion in January, Marking 2024 Low

Aggregate spot trading volumes on major cryptocurrency exchanges plummeted from approximately $2 trillion in October to $1 trillion by the end of January, marking a 2024 low, according to reports from CryptoQuant and BlockBeats. CryptoQuant attributed much of this decline to weakening spot demand since October and a significant liquidation event on October 10. This downturn saw Bitcoin trading roughly 37.5% below its October peak, with Binance's monthly BTC spot volume falling from $200 billion to $104 billion. Analysts also noted sustained stablecoin outflows and a $10 billion reduction in overall stablecoin market capitalization, further constraining liquidity. Concerns over a potentially more hawkish Federal Reserve outlook, particularly if Kevin Warsh assumes the chair, are also weighing on risk assets like crypto, though some foresee a rebound if ETF inflows resume or economic data shifts.