Trading Volumes Crash to Pre-Bull Run Levels
From Yahoo Finance: 2025-06-14 13:30:00
The cryptocurrency market has shifted to a “diamond hands” phase, with holders refusing to sell despite low activity. Spot trading volumes have dropped to October 2020 levels, while Bitcoin’s price remains high. This shift indicates a move towards holding assets rather than speculative trading, potentially leading to supply-driven price appreciation.
Institutional adoption, corporate treasury adoption, and reduced retail trading volatility are contributing to the market maturation. With lower trading volumes and increased holders’ conviction, the market may be setting the stage for further price advances. However, caution is advised as low volume environments can lead to significant price movements in either direction.
Retail investors are encouraged to consider their risk tolerance in the current market conditions. Dollar-cost averaging strategies may be beneficial in low-volatility settings. Institutional players should monitor on-chain metrics and exchange flows for behavioral shifts and evaluate how reduced liquidity may impact larger positions.
The current cryptocurrency market structure indicates consolidation and conviction, potentially setting the stage for another explosive move higher. Whether this will mirror the October 2020 bull run remains to be seen, but the market setup is worth monitoring as a possible inflection point for the broader cryptocurrency market.
Read more: Trading Volumes Crash to Pre-Bull Run Levels