The post Crypto liquidity concentrates in Bitcoin as altcoin spot volumes decline appeared on BitcoinEthereumNews.com.

Trading activity across the broader cryptocurrency market has cooled sharply in recent weeks, even as spot demand for Bitcoin remains relatively resilient. Data from Glassnode shows that the median spot trading volume across the top 500 crypto assets has declined significantly since late January, signaling reduced participation across much of the digital asset market. The metric, measured as a seven-day rolling average, has fallen from levels above $120 million per asset during late 2024 peaks to roughly $20–30 million by early March 2026.  The decline represents an estimated 75–80% drop in aggregate spot trading activity across the broader market. At the same time, Bitcoin spot trading has remained comparatively stronger. Glassnode’s data shows BTC spot volumes fluctuating between roughly $8 billion and $15 billion on a seven-day rolling basis, with activity holding up through much of February even as liquidity across altcoins weakened. Liquidity shifts toward Bitcoin The divergence between aggregate crypto spot activity and Bitcoin trading volumes suggests that capital is increasingly concentrating in larger, more liquid assets. Periods where Bitcoin spot activity remains stable while broader market volumes decline often reflect risk-off positioning among traders, with investors rotating away from smaller tokens toward assets perceived as more liquid and established. Source: Glassnode Such dynamics can occur when market participants reduce speculative exposure or reposition portfolios during periods of macro uncertainty. The heatmap portion of the Glassnode chart also shows trading activity becoming increasingly concentrated among a smaller subset of assets, reinforcing the idea that participation across the broader crypto market has narrowed. Bitcoin tests key price levels Bitcoin’s price action has stabilized in recent sessions after a sharp decline earlier this year. According to data from TradingView, BTC was trading around $70,600 at the time of writing, recovering from February lows near the mid-$60,000 range. Technical levels suggest…

---

Filed under: News - @ March 12, 2026 4:27 am