Bitfinex has reported a staggering 66% reduction in spot trading volumes following January’s peak, suggesting a pause before the market transitions to its next phase.

In a recent post on X, Bitfinex remarked that this current decrease reflects patterns observed in past cycles, where periods of inactivity often precede an upturn.

According to CoinMarketCap, the 30-day spot trading volumes plummeted from more than $500 billion in early November to around $250 billion this week. Trading levels struggled to stabilize between $300 billion and $350 billion from late November to early December, even dipping occasionally towards $200 billion, a range not seen in several months. Notably, a brief surge in volume to over $550 billion occurred in mid-November but was followed by a rapid decline.

Spot crypto volumes continue to drop. Source: CoinMarketCap

Bitcoin Approaching Key Breakout Levels

In related news, analysts highlight that the current market trends resemble those seen before significant breakout events. Michaël van de Poppe mentioned on X that tightening price patterns in Bitcoin (BTC) might lead to increased volatility, particularly with major macroeconomic events imminent this week.

“Bitcoin is maintaining its position above crucial levels, but I anticipate a noticeable uptick in volatility in the days ahead,” remarked van de Poppe. He identified key resistance levels at $89,000 and $92,000, suggesting that breaking above these could potentially accelerate a rise towards $100,000 prior to 2026, while failing to uphold support may result in revisiting lower price levels.

Crypto Declines Following Fed Rate Cuts

As previously reported by Cointelegraph, Bitcoin saw a brief spike to $94,330 early in the week, bolstered by Strategy’s noteworthy $962 million Bitcoin investment, marking their largest acquisition since mid-2025. However, this momentum soon dissipated as traders awaited the year’s final Federal Open Market Committee meeting, during which the Federal Reserve delivered a predictable 25-basis-point rate cut, granting the markets a temporary boost before normalizing again. CoinEx analyst Jeff Ko stated that the rate cut had limited impact as it was largely anticipated.

Related: Brazil’s largest private bank advises investors to allocate 3% to Bitcoin in 2026

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