Glassnode data indicate that Bitcoin and overall altcoin spot trading volumes have fallen to the lowest levels seen since November 2023, even as prices trend higher. The gap between rising prices and shrinking on-chain activity points to weaker underlying demand and thinner participation in the market. Both Bitcoin spot volume and total altcoin spot volume have declined to annual lows, suggesting that the current price rise is not backed by robust buying interest.
Thin liquidity can amplify moves, and shallow order books can trigger sharp price swings on relatively small trades, a dynamic CoinDesk highlighted after the October sell-off. The Bitcoin rally appears to mask fragile liquidity as spot trading volumes remain suppressed, underscoring a cautionary backdrop for market participants.
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