Crypto exchanges across the world saw a decline in spot volumes, making the month see a significant decline in market hype. According to reports, January 2025 saw a notable cooling off of global cryptocurrency exchange spot volumes, which fell 19.5% to $1.73 trillion from a record-breaking $2.14 trillion in December 2024.
Even if the market was hitting all-time highs on the Bitcoin (BTC) chart in January, the collapse happened, but it quickly entered a correction. Additionally, the result is worse than it was in November.
Asian Exchanges Worst Hit
The report highlights that Asian exchanges were particularly hard hit, with volumes falling 34% on South Korea’s Upbit and 24% on Hong Kong’s OKX. Platforms headquartered in the United States shown comparatively greater resilience; Coinbase’s 17% decline was consistent with the general industry trend.
Notably, the market was fueled by the excitement around Donald Trump’s election victory in November, and this euphoria peaked in December when Bitcoin hit a new all-time high exceeding $108K.
Even if this move was corrected in January, the market turned out to be overheated, which caused a decline toward $95K. Even though trading volumes were still high, they were lower below the two-month peak.
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Binance Leads Global Exchange Volume
With the top three exchanges holding onto their combined 71% market share in spite of the volume drop, the data points to a period of market consolidation rather than a fundamental change in trading patterns.
Despite a 20% decline in volume to $801.1 billion, Binance was still in the lead with a 46% market share. With respective market shares of 14% and 11%, ByBit and Upbit completed the top three.
Why Was Crypto Market Volatile in January 2025?
January 2025 saw a slowdown in cryptocurrency trading for a number of reasons. The market corrections after the previous year’s record highs are the reason for the notable decline in trade volumes, which were down 19.5% from December 2024.
Following the turbulent end of 2024, many investors adopted a cautious stance, hoping for more lucid market indications. Institutional and retail traders were also hesitant due to regulatory uncertainties and worries about the growing international scrutiny of the cryptocurrency industry.
The market experienced heightened anxiety as some nations tightened their restrictions while others investigated digital currencies. The slowdown was also influenced by seasonal variables, such as decreased trade activity after the vacation. All of these factors contributed to a more subdued beginning to the year.
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