Crypto trading volumes on major exchanges have dropped from $2 trillion in October to $1 trillion in January, signaling weaker demand. Bitcoin is down 37.5% from its peak due to a liquidity drought. Market liquidity is under pressure, with stablecoin outflows and $10 billion in market cap declines. Short-term risks for BTC include macro-driven factors like a stronger dollar and higher real yields, affecting risk assets. The recent market correction is seen as a necessary move to clear out leverage and speculation. Joao Wedson notes that for a Bitcoin price bottom, short-term holders need to be underwater and long-term holders need to start carrying losses. STH realized price is still above LTH, but a fall below $74,000 could signal a bear market.

Read more at Cointelegraph: Crypto Spot Volumes Plunge To 2024 Lows Amid Weak Demand