The crypto market is experiencing an unusually quiet period. Where rapid price swings were once common, trading volumes have now significantly declined.
According to Bitfinex, this isn’t just a temporary dip but a phase that in past market cycles often preceded a major price movement. This makes the current lull a time to pay close attention.
Trading Activity Declines #
Bitfinex reports that spot volumes this quarter have fallen by 66% compared to a peak in January. Spot volumes reflect the actual amount of crypto being bought and sold, serving as a key indicator of overall market interest.
Additionally, data from CoinMarketCap shows that volumes over the last 30 days have slumped from $500 billion to around $250 billion.
This calm aligns with previous periods where investors awaited clear macroeconomic signals. Analyst Michaël van de Poppe also notes that Bitcoin’s price pattern is becoming increasingly tight. He believes upcoming economic events could quickly reintroduce volatility. A breakout above key resistance levels could push the market toward a larger move, while losing support could open the door for further declines.
Bitcoin Exits Exchanges en Masse #
Simultaneously, a notable amount of Bitcoin is being withdrawn from trading platforms. Market research firm Santiment reports that since December of last year, over 400,000 Bitcoin—about 2% of the total supply—have disappeared from exchanges.
This typically happens when investors opt for long-term storage rather than active trading. Fewer coins on exchanges mean there is less immediate selling pressure.
It’s not just retail investors playing a role. Large funds are also accumulating more Bitcoin. Crypto entrepreneur Giannis Andreou points out that Bitcoin funds now manage more coins than all exchanges combined.
According to him, this indicates a new phase where regulated funds play an increasingly dominant role and the available supply slowly dwindles.
The combination of declining trading volumes and a shrinking supply on exchanges paints a picture of a market preparing for a new phase. While the short term remains uncertain, many analysts see this development as a strong foundation for the longer term.