January 28 News, although market discussions still focus on the price fluctuations of Bitcoin and a few altcoins, the overall cryptocurrency market structure is showing deeper risk signals. Multiple data points indicate that spot trading volume in January has significantly declined, and liquidity continues to contract, making the entire market increasingly fragile.
According to Newhedge’s statistics, the total spot trading volume of cryptocurrencies on centralized platforms in January was approximately $1.118 trillion. If there is no obvious rebound by the end of the month, this level will become the lowest since July last year, reflecting a clear cooling of investor trading appetite. Even though many altcoins have fallen 70% to 90% from their historical highs, funds are still choosing to wait and see rather than bottom out.
Data from CryptoQuant further confirms this trend. The small on-chain transaction indicator, which measures retail activity, has been declining since August last year. Analyst Caueconomy pointed out that the risk of a U.S. government shutdown and the uncertainty surrounding yen arbitrage trading are prompting funds to shift to defensive positions, with a noticeable decrease in new trading and investments.
Changes in capital flow are especially evident at the stablecoin level. In January, the total market cap of ERC-20 stablecoins declined, and stablecoin reserves on exchanges also decreased accordingly. This suggests that funds are not just rotating within the market but are gradually exiting the crypto ecosystem. Previous studies warned that, in the absence of new liquidity, Bitcoin prices face the risk of further decline.
On a structural level, the total market cap of cryptocurrencies has fallen below $30 trillion, with around $2.86 trillion seen as a critical support zone. TradingView’s long-term trend shows that the current market cap is approaching an important trend line that has persisted since 2024. If this support is broken, the market could face a deep correction similar to that of 2022.
In the short term, macro factors may still introduce variables. The US dollar index has recently weakened, and the market is betting on future rate cuts by the Federal Reserve, which historically tends to benefit risk assets. However, to reverse the current situation, the market still needs to see retail inflows and stablecoin funds reaccumulating. The coming days will be a key window to test whether the crypto market can hold its structural bottom.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Bitcoin mining difficulty drops to 133.79 T, down 7.76%
Gate News reported that on March 21, according to CloverPool data, Bitcoin mining difficulty completed adjustment at block height 941,472 at 05:54 today. Mining difficulty decreased to 133.79 T, with a downward adjustment of 7.76%, marking the second largest decline within 2026. The current network hashrate stands at 933.51 EH/s. Analysis shows that the next Bitcoin mining difficulty adjustment is expected to occur in 14 days, with a potential decline of 0.4%.
GateNews9m ago
Bitcoin Tests a $70K Level as Inflation Fears Surge
Bitcoin is grappling with a shift in momentum after failing to sustain a rally above $76,000, slipping back under $70,000 as crude oil prices rise and inflation concerns roil risk markets. The move underscores how macro forces—oil, policy expectations, and stock weakness—continue to shape the
CryptoBreaking30m ago
Strategy CEO: Morgan Stanley's 2% Bitcoin ETF allocation would bring $160 billion in capital inflows
Morgan Stanley's wealth management assets under management are approximately $8 trillion. The firm recommends a Bitcoin allocation of 0-4%. If allocated at 2%, this would bring $160 billion in capital inflows. Morgan Stanley has also submitted an amended filing for a Bitcoin spot ETF called "Morgan Stanley Bitcoin Trust" and has raised $1 million in seed funding.
GateNews48m ago
While the world watches oil prices, an important cash buffer of the Fed has been depleted
The macro risk of Bitcoin is rooted in the nearly depleted liquidity buffer within the financial system rather than oil price fluctuations. With the Fed's reverse repo mechanism losing effectiveness, Bitcoin's reliance on macro liquidity increases, raising concerns about potential market shocks and their impact.
TapChiBitcoin1h ago
