Bitcoin spot trading volume hits its lowest level since the end of the 2023 bear market, plunging more than 75% from its end-of-2024 peak.

CryptoQuant analyst Darkfost released data showing that Bitcoin spot trading volume continued its long-term contraction trend in July this year. Spot trading volumes on major exchanges have overall dropped by more than 75% from their end-of-2024 peak. Binance alone recorded over $35 billion in monthly volume, but this is still a sharp decline compared to the $246 billion in November 2024. Trading volumes across all platforms contracted simultaneously during the same period. The last time such low trading volume levels were seen dates back to the end of the 2023 bear market. The analyst attributes the weak demand for risk assets to multiple macroeconomic pressures: the ongoing escalation of the U.S.-Iran conflict has suppressed risk appetite, while high inflation has left persistent concerns about elevated interest rates—an environment extremely unfavorable for speculative assets. Meanwhile, the stock market has continued to absorb most available liquidity, with the tech sector’s strong performance driving this liquidity siphon effect, though this narrative began to be questioned in July. For Bitcoin to return to an uptrend, a shift in the macro environment is needed, and more importantly, a recovery in demand, which is the only true driver of a rebound in trading volume.