Bitcoin and altcoin prices have pushed higher in early 2026, but market liquidity remains unusually weak, according to on-chain analytics firm Glassnode. The trend mirrors concerns highlighted in a CoinDesk report last November following the October crypto crash.
Glassnode data shows that both bitcoin spot trading volume and overall altcoin spot volume have fallen to their lowest levels since November 2023, even as prices climbed. Spot volume measures actual buying and selling activity on exchanges and is widely used as an indicator of market participation and demand.
Healthy price rallies are typically supported by rising volumes as new buyers enter the market. In contrast, the current advance is occurring amid shrinking spot volumes, pointing to limited participation and fragile demand.
CoinDesk research noted that after the October liquidation cascade — which erased $19 billion in leveraged positions — order-book depth across exchanges remained structurally lower. Reduced liquidity from market-making firms and providers has left the market more vulnerable to sharp price swings.
Bitcoin is trading around $93,500, up roughly 7.5% since Jan. 1, but the rally on thin volume raises caution for traders, as shallow liquidity could amplify volatility.
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