Crypto Spot Volumes Decline by 66% Amid Pre-Cycle Lulls, According to Bitfinex

Crypto Spot Volumes Decline by 66% Amid Pre-Cycle Lulls, According to Bitfinex

Summary:
Bitfinex has reported a significant drop in cryptocurrency spot trading, with volumes down 66% from January's peak. This downturn is attributed to decreased ETF inflows and an unstable macroeconomic environment, reflecting patterns seen in previous market cycles. Analysts note that the current market conditions resemble pre-breakout phases for Bitcoin, indicating possible volatility ahead.

Key Takeaways:

Bitfinex reports a decline in crypto spot trading volume, with a reduction of 66% since January.
Current market conditions are similar to previous cycles, often preceding the next price surge.
Bitcoin is nearing key price levels that could lead to increased volatility, according to analysts.
A recent Federal Reserve interest rate cut provided a temporary boost to Bitcoin but was largely expected by the market.

Crypto Trading Activity Plummets

Bitfinex has observed a sharp decline in cryptocurrency spot trading, stating that volumes have fallen by 66% since the peak in January. This decrease has been prompted by lower ETF inflows and a macroeconomic backdrop that remains uncertain. In a recent post on X, the exchange highlighted that this slowdown echoes past market cycles, where extended periods of low activity often set the stage for a new cycle phase.

According to CoinMarketCap data, 30-day spot trading volumes have dropped from over $500 billion in early November to about $250 billion this week.

Throughout late November and early December, trading struggled to maintain levels above $300–$350 billion, with several sessions dipping toward $200 billion—marks that haven’t been observed in months. This decline followed a brief surge in mid-November, where volumes exceeded $550 billion before rapidly decreasing.

Spot Crypto Volumes Continue to Drop. Source: CoinMarketCap

Related: Brazil’s largest private bank recommends allocating 3% of investment portfolios to Bitcoin in 2026.

Bitcoin Approaches Key Breakout Levels

Amidst this backdrop, market analysts suggest that the current scenario resembles earlier pre-breakout phases for Bitcoin. Michaël van de Poppe pointed out in a recent X post that Bitcoin's price structure is tightening. He believes that significant macro events expected in the upcoming week could lead to increased volatility.

"Bitcoin is maintaining its position above critical levels, but I anticipate a notable spike in volatility in the next few days," the analyst commented. He highlighted important price targets at $89,000 and $92,000, arguing that a break above these resistance levels could trigger a rally towards $100,000 before the year concludes, while a fall below these support levels might prompt another test of lower prices.

Related: Bitcoin price rally stalls at $94K despite Fed's policy shift: Here's an explanation.

Market Reactions and Federal Reserve Decisions

As reported by Cointelegraph, Bitcoin briefly surged to $94,330 earlier in the week, buoyed by Strategy’s purchase of $962 million worth of Bitcoin, marking its largest investment since mid-2025. However, this upward momentum quickly diminished as traders awaited the last Federal Open Market Committee meeting of the year. The Federal Reserve announced a widely anticipated 25-basis-point rate cut on Wednesday, which initially lifted market sentiments but soon cooled as traders absorbed the news. CoinEx analyst Jeff Ko noted the limited impact of the rate cut, stating it was "already priced in" by the market.

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