Crypto spot trading volume halves in three months

Cryptocurrency spot trading volume has halved in three months, Cointelegraph reported. The outlet noted that Binance's BTC trading volume plummeted from $200 billion last October to $104 billion this January. This decline in spot demand is being attributed to a large-scale forced liquidation event on Oct. 10 of last year. Liquidity is being further depleted by stablecoin outflows from exchanges and a decrease in their market capitalization, the report added. Justin d'Anethan, head of research at Arctic Digital, predicted that the biggest risk for BTC in the coming months will be macroeconomic factors, including a potential hawkish turn by the U.S. Federal Reserve. However, he suggested that a resumption of ETF inflows, the enactment of crypto-friendly legislation, and slowing U.S. employment data could act as catalysts for a rebound.