Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows

2026-01-05 21:47:39

Source: CryptoNewsNet Original Title: Bitcoin rally masks fragile liquidity as spot volumes hit year-long lows Original Link: Bitcoin and the wider crypto market has started to wake up recently, but underlying liquidity conditions appear strikingly weak, according to onchain analytics firm Glassnode — a dynamic that echoes concerns raised in previous analysis on hollow crypto market liquidity following market crashes.

Glassnode’s latest data shows that both bitcoin spot trading volume and aggregate altcoin spot volume have sunk to their lowest readings since November 2023, even as prices have climbed — a divergence that typically points to thinning market participation and fragile demand underneath the recent strength.

Spot volume is a metric 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 increase alongside prices, they’ve fallen to year-long lows, underscoring a lack of broad participation behind the moves.

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