Crypto Trading Volumes Hit Four-Month Low Amid Tariff Uncertainty
Cryptocurrency markets faced a sharp decline in trading activity in February, as growing concerns over U.S. tariffs on major trade partners weighed on investor sentiment.
According to CoinDesk Data’s latest Exchange Review, spot and derivatives trading volumes on centralized exchanges dropped 21% to $7.2 trillion, marking their lowest level since October 2024.
Geopolitical and Economic Uncertainty Cools Investor Appetite
The downturn comes as the Trump administration threatens tariffs on Mexico, Canada, China, and the European Union, sparking fears of an economic slowdown. The uncertainty pushed investors away from riskier assets like cryptocurrencies, leading to a market-wide retreat.
Binance Maintains Lead Despite Declining Volumes
Despite the overall slump, Binance remained the top spot trading exchange, commanding a 27% market share. Other major exchanges, including Crypto.com (8.1%), Bybit (7.4%), Coinbase, and MEXC Global, also recorded drops in volume.
CME Derivatives Trading Slows for the First Time in Five Months
Derivatives trading also saw a significant pullback, with CME—one of the largest institutional trading platforms—posting its first decline in five months:
- Total CME crypto derivatives volume slid 20% to $229 billion
- Bitcoin (BTC) futures fell 20% to $175 billion
- Ether (ETH) futures slipped 13% to $35.9 billion
Additionally, the BTC CME annualized basis dropped to 4.08%, its lowest level since March 2023. However, CME’s market share in derivatives trading climbed to a record 4.67%, signaling that institutional players remain engaged despite lower overall activity.
Retail Traders Pull Back, Open Interest Falls to November Lows
Retail trading activity also slumped, with Robinhood (HOOD) reporting a 29% decline in crypto trading volume for February. Meanwhile, total open interest across all centralized exchanges dropped 30% to $78.8 billion, marking its lowest level since November 2024. The data reflects heavy liquidations and reduced risk appetite among traders.
As global markets navigate economic and geopolitical headwinds, crypto trading volumes may remain under pressure until investor confidence returns.
