Bitcoin’s ongoing correction has coincided with weakening market activity, notably a sharp fall in spot trading volume that could weigh on price momentum.
Binance Loses $40B In Monthly Spot Volume
Spot trading volume—Bitcoin bought and sold for immediate delivery—measures participation, liquidity, and investor interest. Market analyst Darkfost noted in an X post on December 6 that November saw a major drop in spot volume across leading exchanges, alongside a 17.5% price decline for BTC during the month.
Binance, which handles over half of Bitcoin spot trades, saw volume slide from $198 billion in October to $156 billion in November, a 21% drop (about $40 billion). Other exchanges also fell: ByBit -13.5%, Gate.io -33%, and OKX -18%.
Darkfost warns that although the recent price pullback is milder than some prior corrections, another down month in December could trigger broader market deterioration—continued selling pressure, weak confidence, and further declines in spot activity.
Why Falling Spot Volume Matters
Sustained declines in spot volume typically reflect waning interest and demand, greater susceptibility to volatility, and thinner support for rallies as investors step to the sidelines. That dynamic can create a self-reinforcing bearish loop that drags on prices.
Spot Volume Peaks Trend Lower
Darkfost also highlights a pattern of lower spot-volume peaks in the current cycle: Binance peak of $333.57 billion in March 2024, then $246.04 billion in November 2024, and $198.6 billion last October. Meanwhile, the spot-to-futures volume ratio sits near 0.23, meaning futures account for over 75% of trading activity. That suggests market activity is increasingly driven by speculative futures trading rather than spot participation.
Market Snapshot
At press time, Bitcoin traded around $89,300, down about 0.21% on the day.
Sources: Darkfost on X, TradingView. Featured image from Pexels.
