BTC spot volume hits two-year low, halved since last October: Analyst

Bitcoin spot trading volume has fallen to its lowest level in two years, signaling a sharp contraction in market liquidity, according to an analysis by crypto analyst Darkfost. In a contribution to CryptoQuant, he noted that February spot volumes were $75 billion on Binance, $25 billion on Gate.io, and $20 billion on Bybit. Darkfost suggested that growing uncertainty surrounding BTC appears to have significantly reduced investors' risk appetite. He explained that after a record-breaking forced liquidation event on Oct. 10 of last year, open interest plummeted and approximately $8 billion in capital evaporated from the market. Since that event, trading volume on major exchanges has been cut in half. "The current decline in volume can be interpreted as investors prioritizing capital preservation over directional trading, adopting a wait-and-see approach for a new trigger," he added.