Bitcoin and the broader crypto market have begun to wake up recently, but underlying liquidity conditions look strikingly weak, according to onchain research firm Glassnode — a dynamic that echoes concerns raised in a November CoinDesk analysis about hollow crypto market liquidity following the October crash.
Glassnode’s latest data shows that both bitcoin spot trading volume and total altcoin spot volume have fallen to their lowest readings since November 2023, even as prices have risen — a divergence that typically points to thinning market participation and fragile demand below recent strength.
Spot volume is a measure that assesses actual buying and selling activity on exchanges, a barometer of real trading interest.
Traditionally, healthy price advances are supported by rising volumes as fresh capital and buyers enter the market. But in this case, spot volumes have not only failed to rise alongside prices, they have fallen to a one-year low, underscoring a lack of broad participation behind the moves.
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This assessment echoes questions raised in a CoinDesk research piece published in November, which documented how liquidity across centralized exchanges — including bitcoin and ether market depth — failed to fully recover after the liquidation cascade in October.
The study highlighted that post-crash order book depth remained structurally lower than before the sell-off, suggesting a new, thinner baseline of liquidity that leaves markets more vulnerable to excessive price reactions.
The October event, which saw $19 billion worth of leveraged positions wiped out in a matter of hours, did more than liquidate overextended bets. It reshaped the underlying structure of the market, leading to a sustained retreat in idle liquidity as market makers and liquidity providers withdrew, making markets shallower and less able to absorb large trades without meaningful price impact.
Bitcoin is currently trading at $93,500 after rising 7.5% since January 1st, but the movement on minimal volume is presenting traders with a number of warning signs.
