Cryptocurrency trading volume drops to 2024 low, spot demand weakens According to BlockBeats, on February 3rd, analysis indicated that as liquidity shrinks and risk appetite decreases, spot trading volume in the cryptocurrency market has significantly declined, and investor participation has noticeably weakened. Data shows that the spot cryptocurrency trading volume of major trading platforms has halved from around $2 trillion in October last year to $1 trillion at the end of January, falling back to the low range since 2024. CryptoQuant stated that spot demand has continued to cool down since October, and the market correction was largely triggered by the clearing event on October 10th. The current price of Bitcoin has fallen by about 37.5% from its October high, and liquidity constraints have further compressed trading volume. Taking Binance as an example, the monthly spot trading volume of Bitcoin has decreased from approximately $200 billion in October to the current $104 billion. In addition to weak demand, market liquidity is also under pressure. Analysis shows that the continuous outflow of stablecoins from the exchange, coupled with a decrease of approximately $10 billion in the total market value of stablecoins, further weakens the buying base. On a macro level, institutions believe that short-term risks still tend to be downward. The head of research at Arctic Digital pointed out that the hawkish expectations in the market for Kevin Walsh's possible appointment as Federal Reserve Chairman may mean a slowdown in interest rate cuts, a strengthening of the US dollar, and an increase in real interest rates, thereby suppressing risk assets including cryptocurrencies. However, some analysts still believe that the current adjustment will help clear leverage and reduce speculation. If there is a subsequent influx of Bitcoin ETF funds, promotion of cryptocurrency friendly legislation, or weakening economic data that prompts monetary policy to shift towards easing, the market may usher in a new rebound window.