Spot trading volume halved, demand dropped to a low point: Why have Bitcoin and the crypto market fallen into a "liquidity winter"?

On February 3, news reports and the latest on-chain and market data reveal that the spot cryptocurrency trading volume has fallen to its lowest point since 2024, indicating a significant weakening in investor demand. Analysts point out that the spot trading volume on major platforms has plummeted from a high of approximately $2 trillion in October 2025 to about $1 trillion at the end of January this year, nearly halving.

Bitcoin is currently around $78,500, down approximately 37.5% from its peak in October. CryptoQuant analyst Darkfost stated that spot demand is “rapidly drying up,” and this round of correction was mainly triggered by a large-scale liquidation event in October, which has continued to ferment amid liquidity tightening and rising risk aversion. Data from the organization show that Bitcoin spot trading volumes on multiple platforms have declined simultaneously, reflecting a significant decrease in market activity.

Moreover, market liquidity is also under pressure. Funds in stablecoins are flowing out of trading platforms, with the related market cap shrinking by about $10 billion, seen as another signal of waning risk appetite. Justin d’Anethan, head of research at Arctic Digital, pointed out that in the short term, Bitcoin faces major macroeconomic pressures, including uncertain interest rate outlooks, a strengthening dollar, and rising real yields, all of which will suppress the performance of risk assets.

However, he also believes that if there is subsequent ETF fund inflow, clearer cryptocurrency legislation in the U.S., or economic data forcing policymakers to shift back to easing, the market could still see a strong rebound. He described the current correction as “bitter but necessary,” helping to clear excessive leverage and suppress speculation.

From a cyclical perspective, Joao Wedson, CEO of Alphractal, pointed out that Bitcoin’s true bottom still requires conditions such as long-term holders beginning to realize losses. Currently, short-term holders are already at a loss, but if the price falls below the key level of $74,000, the market may enter a deeper correction phase.