Bitcoin Spot Trading Volume Hits New Low Since 2023 Bear Market End, Plunges Over 75% from Late 2024 Peak

July 28th, CryptoQuant analyst Darkfost released data showing that Bitcoin spot trading volume continued its long-term shrinking trend in July this year, with spot volume on major exchanges dropping more than 75% from the peak at the end of 2024. In a single month, only Binance recorded over $350 billion in volume, but this was still a significant decrease compared to the $2.46 trillion in November 2024. During the same period, trading volume on major platforms simultaneously shrank. The last time such a low level of trading volume was seen was in the late stages of the 2023 bear market.

The analyst attributed the weakness in demand for risk assets to multiple macro pressures: the escalating US-Iran conflict suppressing risk appetite, persistent high inflation fueling market concerns about sustained high interest rates, creating an extremely unfavorable environment for speculative assets. At the same time, the stock market continued to absorb most of the available liquidity— the strong performance of the tech sector was driving this "sucking effect," but this narrative began to be questioned in July. For Bitcoin to return to an upward trend, a shift in the macro environment is needed, and more importantly, a resurgence in demand, which is the only driving force that can truly boost trading volume.